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UBS is the latest to leave climate banking alliance
UBS, a Swiss bank, will withdraw from the Net-Zero Banking Alliance following the departures of Barclays and HSBC. This is part of a review of the sustainability and climate related memberships of the alliance. The departure raises concerns about the future NZBA initiative, which was established in 2021 with the aim of helping banks align themselves with global climate goals by funding environmentally-friendly activities and setting emission targets. UBS stated that while the alliance provided valuable frameworks to set initial targets, it has developed its own capabilities. The bank decided to leave. JPMorgan, Citigroup, Morgan Stanley Macquarie, and Bank of Montreal, global peers, have all left the group in the past year, as the U.S. increased its scrutiny of institutions that are deemed to support pro-climate policy. The group was created in 2021 with the aim of aligning the sector to the global goal to limit global warming. This included mobilizing more funds for environmentally-friendly activities and setting members targets to reduce emissions related to their business. Barclays announced last week that it was leaving the NZBA group due to the departure of global lenders No longer fit Support the green transformation of the bank. UBS stated that while the group played an important role in assisting banks in establishing initial frameworks for setting targets in the beginning, it had now decided to depart as the work was advanced and Swiss lender had bolstered its internal capabilities. In an email, a spokesperson for NZBA said that the strength of the NZBA lies in its member banks' commitment to leading the net zero transformation. This long-term project requires courage, consistency, and true leadership in order to remain on track. In an effort to retain members, NZBA relaxed some of its stricter membership rules earlier this year. The group claimed that the move reflected the Slow pace of Change In order to appeal to emerging markets lenders and the real economy, it is important to use this information. UBS announced last month that it would replace Michael Baldinger as its chief sustainability officer. Baldinger had been in his role as chief sustainability officer since July 2025. Christian Leitz has replaced Baldinger as CSO. He also holds the title of head of corporate history and responsibility. Beatriz Martin Jimenez oversees UBS Group’s sustainability strategy and its impact. She also sits on UBS Group’s board, which includes the bank’s philanthropic work.
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Palm extends its losses due to concerns about rising production and stocks
The market for Malaysian palm oils futures closed lower on Thursday. This was due to concerns about rising inventories, production and weak export demand. At the close, the benchmark palm oil contract on Bursa Derivatives Exchange for October delivery fell 26 ringgit or 0.61% to 4,241 Ringgit ($1,002.60). David Ng said that the price of crude palm oil futures fell on concerns about rising production and stockpiles in the coming week. He is a proprietary trader with Kuala Lumpur based trading firm Iceberg X Sdn. Bhd. The recent weakness in export demand has also been seen to weigh down on the market sentiment. According to cargo surveyors, the July palm oil exports fell between 6.7% and $9.7%. On August 11, the Malaysian Palm Oil Board will release its data on supply and demand. Dalian's palm oil contract, which is the most active contract in Dalian, fell 0.33%. Chicago Board of Trade soyoil fell by 0.52%. As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils. After the Kremlin's announcement that Russian President Vladimir Putin would meet U.S. president Donald Trump within the next few days, there were expectations of a diplomatic resolution to the conflict in Ukraine. Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger. Indonesian goods export to the U.S. are subject to a tariff of 19% as of August 7. However, the country continues to negotiate exemptions for certain key products such as crude palm oils. The dollar has weakened by 0.07%, which makes palm slightly cheaper to buyers who hold foreign currencies. $1 = 4.2300 Ringgit (Reporting and editing by Ashley Tang, Sumana Nady and Eileen Soreng).
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Trump's trade war may seem to be going well, but there are still obstacles.
The U.S. president Donald Trump seems to be winning his trade war, which he launched after returning to the White House, in January. He has imposed double-digit tariffs on almost all imports and reduced the trade deficit. There are still many obstacles to overcome, such as whether U.S. trade partners will fulfill their commitments for investment and purchases of goods, whether tariffs will increase inflation or slow demand and growth and whether courts will allow him to continue with his ad hoc levies. On the day of the inauguration, U.S. tariffs were effective at around 2.5%. Since then, it has risen to between 17% to 19% according to various estimates. The Atlantic Council predicts it will be closer to 20% than ever before, as higher duties take effect on Thursday. Trading partners have mostly avoided retaliatory duties, saving the global economy a painful trade war. Data released on Tuesday revealed a 16 percent decrease in the U.S. Trade Deficit in June. The U.S. Trade Gap with China was the smallest it has been in over 21 years. The American consumer has proven to be stronger than expected. However, recent data indicates that tariffs have already affected jobs, inflation, and growth. What does winning really mean? Josh Lipsky is the director of economic studies at Atlantic Council. "He is raising tariffs against the rest of world, and avoiding a trade war much easier than he expected. But the bigger question to ask is what impact this has on the U.S. economy." Michael Strain, the head of economic studies at conservative American Enterprise Institute said that Trump's geopolitical wins could be hollow. He said that while Trump is winning in a geopolitical context, he was losing the economic war. "What we see is that Trump is more willing than other nations to cause economic harm to Americans. "I think that's losing." Kelly Ann Shaw, a former White House trade advisor during Trump's initial term and now a partner with Akin Gump Strauss Hauer & Feld said a strong economy and stock prices near record highs "support a tariff strategy that is more aggressive." It will take some time for Trump's policies, including his tariffs, tax reductions, deregulation, and energy-boosting policies, to be implemented. She added, "I believe history will judge his policies. But he's the first president I have known to make significant changes to the global trade system." DEALS SO FAAR Trump has signed eight framework agreements that include the European Union (EU), Japan, Britain, South Korea and Vietnam. They also include Indonesia, Pakistan, the Philippines, Pakistan, Indonesia, the Philippines, the Philippines, the Philippines, the Philippines, the Philippines, the Philippines, the Philippines, the Philippines, the Philippines, the Philippines, the United States, the Philippines, the Philippines, the Philippines, the Philippines, the Philippines, the Philippines, the Philippines, the Philippines, the Philippines, the UK, the Philippines, the Philippines, the Philippines, the Philippines, This is far below the "90 deals within 90 days" that administration officials had proclaimed in April. However, they still account for about 40% of U.S. commerce flows. Add in China which is currently subject to a 30% tariff on its products but will likely be granted another reprieve before the August 12 deadline. This would bring that figure up to 54%. Trump's tariffs have not been consistent, despite the deals. He increased the pressure on India on Wednesday, increasing new tariffs from 25% to 50% because it imports oil from Russia. After Trump complained that Brazil was prosecuting former leader Jairbolsonaro, an ally of Trump, the same tariff rate will be applied to goods from Brazil. After a phone call between Trump and the leader of Switzerland that shattered a previous deal, Trump is now imposing 39% tariffs on goods from Switzerland. Ryan Majerus is a trade lawyer with experience in the Trump and Biden administrations. He said that the announcements so far have failed to address the "longstanding and politically entrenched issues" of U.S. trade policymakers. He also pointed out that there are no specific mechanisms to enforce the large investments, such as the $550 billion announced for Japan and the $600 billion for EU. PROMISES and RISKS Critics criticized European Commission President Ursula von der Leyen for agreeing to a 15% tax during a surprise visit by Trump to Scotland in the last month. She received little back. This deal disappointed winemakers and farmers who wanted a zero-to-zero tariff. Francois-Xavier Husard, the head of France's FNIL National Dairy Sector Federation, said that 15% was better than 30% but still would cost dairy farmers millions. Von der Leyen made a symbolic commitment to invest $600 billion and buy $750 billion worth of strategic U.S. goods, according to European experts. Trade experts and analysts point out that Brussels cannot mandate EU companies and members to meet their pledges. Officials in the United States insist that Trump has the right to impose new tariffs on goods if he feels like Japan, Europe or other countries are not fulfilling their obligations. It is unclear, however, how this would be enforced. History offers us a warning. China's state-run economy never met the modest purchase agreements made under Trump’s Phase I U.S. China trade deal. It was difficult to hold it accountable for the Biden administration. "All of this is not tested." "The EU, Japan and South Korea will have to figure out a way to operationalize it," Shaw said. "It is not just about government purchases." "It's about getting the private sector to invest, back loans or purchase certain commodities." The main legal challenge to the tariffs Trump unilaterally imposed is the fact that they are based on a flawed premise. During oral arguments in appellate courts, his legal team was grilled over the novel use of 1977 International Emergency Economic Powers Act to justify his tariffs. This act has been used historically for sanctions or freezing assets against enemies. The Supreme Court will ultimately decide the issue, regardless of whether a ruling is made at any given time.
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China's central banks extends its gold purchase for the ninth consecutive month in July
Official data released on Thursday showed that China's central banks added gold to their reserves in July, marking the ninth consecutive month they have done so. China's gold reserves increased to 73.96 millions fine troy pounds at the end July, up from 73.90million ounces by the end June. Data from the People's Bank of China showed that the country's gold reserve was valued at $243.99billion at the end of July, up from $242.93billion at the end of the previous month. Zain Vawda is an analyst at MarketPulse, by OANDA. He said that the continued purchases of gold by one of world's biggest central banks indicate underlying strong demand for it. Vawda said that the decision was a strategic one, and a long-term one. After a six-month pause that dampened Chinese investors' demand, the PBOC resumed its gold purchases in 2024. Gold, which is traditionally viewed as a safe-haven asset in times of uncertainty has reached record highs this year due to concerns about tariffs, geopolitical tensions and central bank purchases. In a poll conducted in July, it was revealed that investors are increasingly turning to gold as a safe asset due to concerns over the global economy and fiscal debt. This has led analysts and traders to raise their estimates. The median forecast for gold per troy-ounce was $3,220 in the poll of 40 traders and analysts. This is up from $3.065 in an earlier poll. As of 0857 GMT, spot gold was trading for $3,380 per ounce. The World Gold Council has downgraded their estimate of gold purchases this year by central banks. However, they have added that the long-term trend for central banks to reallocate assets from the U.S. to gold is still intact. Reporting by Xiuhao chen and Lewis Jackson in Beijing; Ashitha Shivaprasad, Bengaluru. Editing by Louise Heavens & Eileen Soreng.
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Sources say that India's JSW is seeking a larger share of the met coke quotas in order to make up for the shortfall.
Two sources familiar with this matter say that JSW Steel in India has asked the government to increase the company's allocation of quotas for the importation of low-ash metallic coke, which is a fuel used to make steel, to cover shortfalls. India, the second largest crude steel producer in the world, extended its country-specific import quotas for met coke from June to December. The purchase limit was capped at 1.4 millions metric tons. Sources declined to identify themselves because the discussions were not made public. JSW Steel is India's largest steelmaker in terms of capacity. JSW Steel executives asked government officials to increase their allocation. They cited operational difficulties in two of the company's units located in southern Karnataka state and central Chhattisgarh state, said the sources, without revealing how much more the company wanted. "Naturally this quota hampers operations, and we have provided representation." One source said that the matter was still being discussed. The source said that JSW Steel could have moved some of its excess from other plants to the affected ones, but logistics costs were an obstacle and there was not enough production to cover the shortfalls. Emails seeking a comment from the Federal Trade Ministry were not answered. JSW Steel did not have any comment. Import curbs have also worried major steel producers, such as JSW Steel and ArcelorMittal Nippon Steel India. They have claimed that the curbs hinder their expansion plans, because it's difficult to find preferred grades locally. India launched a probe to determine if met coke with low ash was being imported from Australia, China and other countries, including Colombia, Indonesia, Japan and Russia. This came after a request by an industry group. The imports of low-ash coke have doubled over the last four years, and the major raw material suppliers include China, Japan Indonesia, Poland, and Switzerland. In early this year, Piyush Goyal, the Commerce Minister of India, urged steelmakers in India to use met coke. Reports have indicated that the federal Ministry of Steel also supports the import restrictions, stating there is enough met coke available locally to meet local demand. Reporting by NehaArora. (Editing by Mayank Bhardwaj and Mark Potter.
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Dollar softens as global stocks rise and Fed eases bets
Global equity markets rose on Thursday with Japanese shares reaching a new record high. Wall Street tech gains, positive earnings, hopes of a ceasefire agreement in Ukraine, and the expectation of U.S. interest rate cuts all contributed to the rise. The markets largely shrugged off the latest tariffs by U.S. president Donald Trump, including a 25% additional tariff on U.S. imported goods from India due to purchases of Russian oil as well as a 100% threat on chips. Eddie Kennedy, Marlborough's head of discretionary funds and bespoke fund management, said: "It is surprising that the market continues to melt up despite everything being thrown at it." The STOXX 600 index in Europe rose by 0.5%. Major indexes from Frankfurt and Paris also increased, with gains of 1% and 0.8% respectively. The FTSE 100 in Britain was the exception, falling 0.3%. The euro was also supported by the plans for a meeting to be held between U.S. president Donald Trump and Russian president Vladimir Putin regarding the conflict in Ukraine. Barclays' head of European equity strategies, Emmanuel Cau said: "It would be a positive extra if there was a ceasefire." It would be clear that if there was a deescalation it would be supportive. It is not the main driver, but it has definitely been an issue for Europe. In Asia, Japan’s Topix broad index rose by 0.7%, reaching a new record high. The more tech-focused Nikkei gained about the same amount. Taiwan's benchmark stock index soared up to 2.6%, reaching a record high of more than a year. The shares of chipmaker TSMC, who announced this year additional investments in their U.S. manufacturing facilities, soared by 4.9%, reaching a new record high. South Korea's top Trade Envoy said that Samsung Electronics and SK Hynix will not be subjected to 100% tariffs. Hong Kong's Hang Seng index rose 0.5% on the day, but mainland Chinese blue-chip indexes were only marginally higher. In offshore trading, the yuan strengthened slightly to 7,1819 dollars per yuan. Futures for the U.S. S&P500 rose by 0.3%. The cash index rose 0.7% on Wednesday. Capital.com analyst Kyle Rodda said in a recent note that Wall Street "seems to have gotten back its mojo". There are still persistent downside risks. He said that the number of negative surprises in official statistics is increasing. "Valuations have also been stretched with the forward price-to-earnings hovering at its highest level in four years. "Trade uncertainty persists." DOLLAR on the Back Foot The U.S. Dollar remained lower on Thursday against major peers, as expectations of a more accommodative policy by the Federal Reserve were stoked by both some disappointing macroeconomic data - including Friday's payrolls survey - and Trump’s decision to install new Fed board members who are likely to share his dovish views about monetary policy. The focus is on Trump's nominee to fill the upcoming vacancy in the Fed Board of Governors, and on candidates for the next Chair of the Central Bank. Jerome Powell's current tenure ends in May. The benchmark yield on the 10-year U.S. Treasury was unchanged at 4.2365%. The yield on the two-year bond, which is sensitive to changes in expectations of interest rates, rose 1 basis point to 3.7134%. This was close to the three-month low reached on Monday, when it fell to 3.659%. The dollar index (which measures the currency's value against the Euro, Sterling and four other counterparts) eased by 0.2%, to 98.031. This is a continuation of a 0.6% decline from Wednesday. After a 0.7% increase in the previous session, the euro rose 0.2% to $1.1686, The value of the sterling rose by 0.2%, to $1.3378. The BoE is expected to lower interest rates on Thursday for the fifth consecutive time in the past 12 months. However, nagging concerns about inflation will likely split policymakers and cloud their outlook for future moves. Two members of the Monetary Policy Committee may advocate for a rate reduction by a half point, while two others may argue for no change. Spot gold rose 0.3% to $3.376 per ounce after hitting its highest level for two weeks.
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Israel's Leviathan signs a $35 billion natural gas deal with Egypt
NewMed, a partner in the Leviathan field, announced on Thursday that Israel's Leviathan gas field had signed the largest gas export agreement in Israel's history. The deal is worth up to 35 billion dollars and will supply gas to Egypt. Leviathan will sell gas to Egypt for about 130 billion cubic meters (bcm) until 2040 or until the full contract quantity is met. After production started in 2020, the Leviathan reservoir began to supply Egypt. The initial contract was signed in 2019 and is for 60 bcm, or 4.5 billion cubic meters per year. It will be supplied to Egypt by early 2030s. NewMed reported that Leviathan has already provided 23.5 bcm (billion cubic meters) of gas to Egypt from 2020. NewMed CEO Yossi Abd said that the deal was the largest export agreement ever to occur in the eastern Mediterranean and strengthened Egypt's role as the major hub in the area. This deal, which was made possible through our strong regional partnerships will open up new regional export opportunities. It is a further proof that the natural gas industry and the broader energy sector can act as a pillar for collaboration. Egypt, the largest Arab country, has experienced rolling blackouts for the past two years due to the government's financial strain and the lack of natural gas. It has abandoned its plans to be a hub for supplying Europe, and is now a net gas importer. In recent months it signed agreements with energy companies and trading houses in order to purchase 150-160 cargoes liquefied gas. Exports from Leviathan ceased during a 12-day conflict between Israel and Iran, in June. In the first phase of the agreement, Leviathan will provide Egypt with 20 billion cubic meters of gas beginning in early 2026 following the connection of new pipelines. NewMed stated that it will export the 110 bcm remaining in a second stage, which will begin following the completion of the Leviathan project expansion and construction of a transmission pipeline from Israel via Nitzana to Egypt. Leviathan's growth, the company said, would allow it to produce and supply goods within Israel as well as to its neighbours until 2064. (Reporting and editing by Kevin Liffey, Barbara Lewis and Steven Scheer)
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Emergency services report that a drone attack extinguished the fire at Russia's Afipsky refinery.
Local emergency services reported on Thursday that a fire caused by drone debris at the Afipsky refinery, in Russia's Krasnodar Region, had been extinguished. The Russian Defence Ministry reported that air defence systems shot down nine Ukrainian drones overnight over the region. The extent of damage to the Afipsky Refinery was not immediately known. This refinery along with the Krasnodar Refinery processed 7.2 millions metric tons crude oil by 2024. According to market sources, the disruption at Afipsky may result in a lower use of crude oil and could potentially add extra barrels to Russia’s exports for August. Drone attacks by Ukraine have regularly targeted Russian oil refineries, gas stations and ports for exporting oil and natural gas. Russia will increase its exports to two million barrels of crude oil per day from its western ports in August. This is about 200,000 barrels more than the previous estimate. Two refineries had more crude left to export following cuts made after Ukrainian drone attacks. Following the drone attacks on August 2, the Rosneft-operated refineries in Ryazan, and Novokuibyshevsk, stopped operations at several crude distillation unit. Three industry sources estimate that repairs will take a month. (Reporting and Editing by Emelia Matarise Sithole)
Dalian iron ore prices drop on uncertain demand outlook and record Brazilian exports
Dalian iron-ore futures dipped on Thursday, as investors weighed a shaky demand outlook against the efforts to reduce overcapacity. Brazil's record exports also impacted market sentiment.
The September contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading down by 0.25% to 793 yuan (US$110.47) per metric ton.
As of 0703 GMT, the benchmark September iron ore price on the Singapore Exchange was unchanged at $101.8 per ton.
Analysts from ANZ said that iron ore futures declined as investors weighed a murky outlook for demand against efforts to curb excess capacity, which could lead to an improvement in the economy.
Brazil exported 41.1 million tons of iron ore, a record. The surge was attributed to large projects in China as well as the resumption in domestic production.
According to Chinese consultancy Mysteel, the Chinese construction steel market will transition in August from a sentiment-driven trajectory to one based on fundamentals.
The firm noted that the recent optimism in the industry is fading and the demand-supply dynamic has returned to the forefront.
Hexun Futures, a broker, stated that the average daily hot metal output is still high and expected to remain strong in August. Meanwhile, improving steel mill profits continue support raw material prices.
A weaker dollar helped support iron ore prices, as the Federal Reserve's rate cut expectations grew amid growing concerns that partisanship was creeping into U.S. Institutions.
Dollar-denominated investments are more affordable for holders of currencies other than the dollar.
Coking coal and coke, which are used to make steel, have both gained in value, rising by 2.29% and 1.71 %, respectively.
The benchmarks for steel on the Shanghai Futures Exchange are mostly in positive territory. Hot-rolled coils dropped 0.35%, while stainless steel increased 0.54%. ($1 = 7.1783 Chinese yuan). (Reporting and editing by Sonia Cheema; Lucas Liew)
(source: Reuters)