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India is considering a nationwide climate-linked insurance scheme
India's government is in early stage talks with local insurance companies about designing a national climate-linked programme to simplify the payout process following extreme weather events like heatwaves and flooding. The scheme would use a parametric model of insurance, in which policyholders get a payout when certain weather thresholds are exceeded, such as rain, temperature, or windspeed. If the talks are successful, India – one of the countries most susceptible to extreme weather - could be the first major economy to implement such a program. This would help to reduce costs for the government which currently uses disaster funds to assist states that are experiencing adverse climate events. Ramaswamy Narayanan is the chairperson of the state-run reinsurer GIC re. He said: "We have seen an increase in the severity and frequency of adverse climate events, and this has led to the discussion with the Government." In a parametric insurance model, payouts are made quickly. In traditional insurance, payments depend on the amount of loss and can take many years to assess. In areas with little or no traditional insurance, parametric insurance can be used. According to an official in the federal government, officials support this idea even though there has not been a formal proposal made yet. Both the official and another insurance executive who declined to be named said that discussions were taking place. Officials from the National Disaster Management Authority (NDMA), the Finance Ministry, GIC Re, and other major insurers are currently exploring funding and coverage options, according to the official. Requests for comments were not immediately responded to by the ministry, disaster management agency or India's insurance regulator IRDAI. Globally, interest in parametric insurance has increased. In 2023, Fiji, the first Pacific Island country, adopted a sovereign parametric policy to secure coverage against tropical storms. As part of the United Nations Environment Programme’s finance initiative, it is expected that financial instruments will also be prominently featured at COP30 in Brazil this year. SEEKING COVER According to the Germanwatch Global Climate Risk Index, 2025, India is ranked sixth in the world for climate vulnerability. This index tracked events from 1993 to 2022. India has experienced more than 400 extreme weather events during this time, which resulted in over 80,000 deaths, and an economic loss of $180 billion. In recent years, flooding has caused crop losses and livelihoods in key agricultural states like Punjab and Assam. Flash floods and land slides have also destroyed roads, bridges, and homes in Uttarakhand, Jammu, and Kashmir. According to a government official, the federal government is looking at multiple financing options. These include tapping into existing disaster relief funds, or adding small fees to utility bills in order to pay for premiums. The official said that if it is in line with the rules of urban local authorities, small deductions on utility bills may be considered. A consortium of insurance companies could enter into contracts with municipal corporations. Seven industry executives stated that, apart from the federal level, some states are piloting such schemes, and more are in discussions with insurers about securing parametric coverage. Last year, a group consisting of 50,000 women who are self-employed in the states of Rajasthan, Gujarat, and Maharashtra received $5 when temperatures exceeded 40degC from May 18 to May 25. After heavy rains earlier in the year, Nagaland in northeast India, which was India's first state to be covered by SBI General Insurance for disaster risks in 2024, got its first payout in May of $119,000 after excessive weather. Kerala's cooperative milk marketing federation, located in southern Kerala, has also launched a scheme that protects cattle farmers from the losses they suffer during the summer months when temperatures rise and milk production drops. "States look at a medium-term window for implementation." "These conversations are gaining momentum, and all insurance companies are attentive to the opportunities," said a senior executive of a leading private insurer.
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Saudi Arabia's PIF Wealth Fund plans a dual-tranche Green Bond Sale
A source told us that Saudi Arabia's sovereign wealth fund had hired banks to handle the sale of its euro-denominated first green bond. Documents from one of the banks involved in the arrangement were also seen by the reporter. The planned bond sales are part of a larger effort to diversify financing sources and support the Kingdom's plans for economic transformation while also aiming at net-zero emissions by 2060. Documents show that the Public Investment Fund, which oversees assets worth nearly $1 trillion, has instructed Credit Agricole CIB and JP Morgan to organize investor calls beginning Monday. PIF did respond immediately to a comment request. Green bonds are securities which raise money specifically for projects that have environmental or sustainability benefits. PIF entered the green debt market in 2022. Since then, it has issued several U.S. Dollar-denominated Bonds under its Green Finance Framework. The framework allows for proceeds to be allocated to projects that promote renewable energy, clean transportation and sustainable infrastructure, including those undertaken in Saudi Arabia by PIF subsidiary companies aligned with Vision 2030. Crown Prince Mohammed Bin Salman announced the 2060 goal of net-zero in 2021 as Saudi Arabia intensified efforts to attract green investments and expand sustainable finance. Reporting by Md. Manzer Hussain, Editing by Kirby Donovan
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Sumitomo, a Japanese company, wins a Singapore grant for developing ammonia as marin fuel
Sumitomo Corp, a Japanese trading company, announced on Monday that it had been granted a grant by the Singapore government to develop ammonia to be used as a marine fuel alternative to decarbonise shipping. Sumitomo stated in a press release that this exclusive funding would support research and development efforts to enhance the safety and efficiency of ammonia supply, or ammonia bunkering, at Singapore's Port. The Maritime Innovation and Technology Fund of Singapore (MINT Fund) was used to award the grant. However, the MPA did not reveal the details of the grant. MPA didn't immediately respond to an 'ask for comment. Ammonia, a fuel alternative that is being explored by shippers and electric companies to reduce emissions, has a high cost. Sumitomo will demonstrate ammonia bunkering at a Singapore demonstration in 2027. It will also work with MPA on safety protocols, operational guides, and emergency response plans. Separately, a Keppel Ltd consortium, which includes Sumitomo, Advario Asia Pacific and Keppel Ltd has been selected by Singapore’s Energy Market Authority (EMA), and the MPA, to move to the next stage of a study to examine the end-toend low-carbon or zero-carbon solutions for ammonia bunkering and power generation on Jurong Island. Sumitomo stated that these efforts would contribute to the decarbonisation of the shipping industry while supporting the company's broader commitment to the energy transformation as a key area for growth. (Reporting by Yuka Obayashi; Editing by Harikrishnan Nair)
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Citigroup doubles down on EM optimism, despite a cold reception to UK equities
Citigroup downgraded UK equities from "overweight" to "underweight", and upgraded Emerging Markets to "overweight". This is part of a strategic pivot towards cyclical growth opportunities driven by AI. Citi analysts raised their target price for the MSCI EM Index to 1,465, implying a 7% increase from current levels. They also increased their target price for the FTSE 100 from 9,300 to 9,700, implying a modest rise from current levels for the same period. In a note published on Friday, the brokerage said that UK's exposure to defensive sectors like consumer staples and utilities made it less appealing in an environment where cyclical and growth plays are increasingly preferred. Citi notes that while economic activity in the UK has been stable, growth has been largely driven by government spending and front-loaded trade, with consumer demand still weak. The outlook for UK shares becomes less attractive when compared to Citi's expectations that earnings growth will be more evenly distributed across regions, industries, and styles by 2026. Citi analysts stated that "while the UK has performed very well as an overweight, the potential widening and demand for cycle is less favorable for the index." The macro-environment continues to be affected by lower energy prices. Citi predicts a 1% decline in FTSE 100 earnings by 2025, and there are no Bank of England interest rate cuts this year. Citi, on the other hand, sees EM as benefiting from a convergence of factors. These include a soft landing scenario in the U.S. and anticipated Federal Reserve rate reductions, along with exposure to the booming AI themes through markets such as Taiwan, Korea, and China. The report noted that equity flows into EM are still subdued but could increase.
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Dollar firms as copper falls from 16-month high
The copper price fell on Monday, after reaching a 16-month high in the previous session. A stronger dollar countered support from supply concerns from Chile, the top producer and Indonesia as a major supplier. The price of three-month copper at the London Metal Exchange dropped 0.4%, to $10,666.50 a metric ton, as of 0726 GMT. It had previously reached its highest level since May 2024 earlier in the day. The U.S. Dollar Index rose by 0.4%, reaching a record high of more than a week against its competitors. A stronger dollar makes greenback-denominated assets more expensive for holders of other currencies. Freeport Miner said that five workers who had been missing following a mudslide disaster at the Grasberg Copper and Gold Mine in Indonesia were found dead on Sunday. Grasberg, the second largest copper mine in the world, accounts for 3% global concentrate production. Analysts have estimated that the disruption will result in a loss of 591,00 tons of copper production between September 2025 to 2026. This has prompted Goldman Sachs and Citi to increase their price predictions. Prices soared to $10,700/t, continuing the bullish trend in copper. Investors remained worried about supply issues in Chile and Indonesia," ANZ stated. The growth of refined copper production is being affected by the mine supply issues, as well as China's antiinvolution drive. After an accident on July 31, the production of Chile fell by 9.9% in August compared to last year. Other London metals include aluminium, which fell by 0.3% to 2,701.50 per ton. Nickel also declined, falling 0.2% to $16,395. Lead fell by 0.5% to $2,000, while tin dropped 2% to $35,715; and zinc, which lost 0.6% to 3,017. "Aluminium also exceeded the $2,700/t marker last week. This was supported both by supply concerns and a strong demand, as operating rates improved," ANZ stated. Golden Week, which runs from October 1 through October 8, is a time when Chinese markets will be closed. Click here to see the latest news in metals, and other topics. (Reporting and editing by Sumana Jacob-Phillips, Subhranshu Shu, and Brijesh Pattel, Bengaluru)
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Hotel prices cause countries to skip COP30 Climate Summit
Hundreds of dollars per night are being charged by hotels due to a lack of rooms at the COP30 Climate Summit in Brazil next month. The small island states that are on the frontline for rising sea levels will have to reduce the size of their delegations to Belem. Two European nations also said they would consider not attending. The organisers of COP30 are racing to turn love motels, churches and cruise ships into accommodation for the 45,000 expected delegates. Brazil held the climate talks in Belem because it has an average of 18,000 hotel rooms available. It hoped that its location at the edge the Amazon rainforest, would draw attention to the threats climate change poses to the ecosystem and its role as a sink for climate warming emissions. LATVIA SAYS THAT ROOMS ARE EXPENSIVE Latvia’s climate minister said that the country had asked if their negotiators can dial in via video call. Melnis stated, "We've already decided that it is too expensive for us." It's the very first time that it is so expensive. "We have a duty to the budget of our country." Lithuania, a second country in eastern Europe, has also indicated that it will not be staying after receiving quotes for prices exceeding $500 per night per person. A Lithuanian energy minister spokesperson, who covers climate issues, stated that the quality and legitimacy of negotiations would be affected if governments were unable to attend due to the cost. According to a spokesperson for Brazil's COP30 Presidency, the decision is up to each country. DELEGATIONS FIND IT HARD TO PAY FOR HOTELS AT COP30 The website displayed rates ranging from $360 per night to $4,400 per night, just days after Brazil launched a booking platform at the beginning of August. The platform indicated that prices this week began at $150 per day. The host country rejected calls to move the summit, saying it would provide 15 hotel rooms at a price of less than $220 per night for each delegation from a developing country and below $600 per delegation from a wealthy nation. The United Nations also increased their subsidy for low-income countries to attend. According to Brazil's Presidency of COP30, less than six weeks before COP30, there are still 81 countries in negotiations about hotel rooms, while 87 have already reserved accommodations. Evans Njewa is the chair of the Least Developed Countries Group, which represents the poorest countries in the U.N. Climate Talks. He said that the group was still assessing the attendance plans. Njewa said: "We receive a large volume of concerns... and many requests for assistance." "Unfortunately, our capacity is restricted, which could affect the size and composition of delegations." CLIMATE ACTION IS UNDER THREAT The COP Summit this year takes place as President Donald Trump of the United States has tried to shift America's focus away from climate change and Europe's priorities have changed due to its struggling economies. Ilana Seid said that the lack of affordable housing placed her members at "a severe disadvantage". The small island states have taken advantage of previous COPs in order to get more funding for climate change adaptation. Seid stated that smaller delegations would not allow island nations to "participate effectively in the negotiations that decide our future" because they lack the expertise required.
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Nikkei, Bitcoin, and gold soar to new highs on the back of political waves
Sanae Takaichi, the fiscal and monetary dove who was recently elected leader of the ruling Party, has now become Japan's first woman prime minister. Gold reached a new record high of almost $4,000 on Sunday. The leading cryptocurrency, bitcoin, also rose to its lifetime high. Investors are increasingly looking to alternative assets to store value, as the U.S. shutdown has strained nerves. The Nikkei rose above 48,000. This was the first time in history that Takaichi had beaten the moderate Shinjiro. Koizumi at the leadership vote of the Liberal Democratic Party on Saturday. This stoked expectations for fiscal stimulus. The yen fell as much as 2.2%, surpassing 150 dollars for the first since August 1. It also dropped as much as 1.8%, reaching a new low of 176.25 against the euro. Concerns about Japan's finances have sent the yields on 30-year government bond to an all-time record. The yields of short-dated Japanese government bonds fell to their lowest level in two weeks as traders reduced bets about when the Bank of Japan would resume raising interest rates. The implied odds that the BOJ will raise interest rates by the end of this year have fallen to 41%, down from 68% last Friday. Takaichi criticised the BOJ for raising rates a year ago as "stupid". Her recent remarks have been more restrained. She has only said that central bank policies should align with government. In a recent research report, Morgan Stanley MUFG Securities economists stated that "we believe that concerns among investors that the new administration may pursue extreme fiscal expansion" or exert political pressure against the BOJ have been overblown." They noted that Takaichi’s stance appears "closely aligned" with BOJ governor Kazuo Ueda’s "cautious" approach to policy normalization. The majority of other major stock markets in the region, such as mainland China, South Korea, and Taiwan, were closed on holidays. Hong Kong's Hang Seng fell 0.7% ahead of Tuesday's holiday. Australia's benchmark index fell 0.1% despite the fact that trading was thinned out by holidays across several states, including New South Wales. U.S. S&P futures were 0.3% higher after the cash index reached a new record high on Saturday. The STOXX50 futures for Europe were flat with the stock market at record levels. The U.S. Dollar gained ground against European currencies. It used its momentum against the Japanese yen in order to recover from last week's 0.5% drop against a basket major counterparts. The euro fell 0.26%, to $1.1714. Sterling slipped 0.22%, to $1.3440. Last time gold was traded, it was around $3,927. It had risen as much as 1.5% to a new record, just above $3.944. Bitcoin was trading at around $123,600 after its recent jump from $125,653.32 to Sunday. Geoffrey Kendrick is the head of Standard Chartered Bank's digital assets research. This year, bitcoin traded with "U.S. "This year, bitcoin has traded with 'U.S. Kendrick said, "I think bitcoin will continue to rise during the shutdown" and that it will reach $135,000 soon. The oil prices increased after OPEC+ announced that it would increase its production by 137,000 barrels a day (bpd), the same modest increase from October. This announcement came amid persistent fears of a looming glut in supply. Sources said that Russia wanted to increase output by 137,000 bpd in order to avoid price pressure, but Saudi Arabia preferred to double, triple, or even quadruple this figure to gain market share faster. Brent crude futures rose 1.3% to $65.36 a barrel, while U.S. West Texas intermediate crude was at $61.69 a barrel. Both crudes saw a 1.3% increase.
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Andy Home: Tin prices rise as Indonesia cracksdown on illegal miners
This time, the tin supply chain is in trouble again. The government of Indonesia has started a massive crackdown on illegal mining. The London Metal Exchange's (LME) 3-month tin price has increased to more than $37,500 a metric ton. This is the highest price since April, when the Bisie mine, in the Democratic Republic of Congo, was a supply threat. Indonesian President Prabowo Subianto said that the government wants to close 1,000 illegal tin mines on the tin rich islands of Bangka & Belitung. This is the highest price since April when the supply threat was the Bisie mine in Democratic Republic of Congo. It is impossible to estimate how much tin these operations produce, but there could be a positive offset if the closure of such operations leads to a higher level of production in the official sector. The price of tin is rising again because it is another drop in the cauldron that is the supply crisis. LONG CAMPAIGN Since the deregulation of tin production at the end the 20th century, the Indonesian authorities are struggling to regain the control over the sector. It's difficult to distinguish between those who are operating with an official license and those who don't. The boundaries have blurred so much that PT Timah, the top producer in the country, is now being accused of facilitating black market trade. Some illegal "mines", however, are nothing more than rafts that are sent out to dredge tin at night in waters licensed by PT Timah or other operators of the official sector. The tin is then smuggled from the country in small boats. One such boat was seized by the Malaysian Maritime Enforcement Agency this week, transporting 530 sacks of tin weighing 26 tons. Prabowo stated that the latest cracking of the regulatory whip began at the beginning of last month, and it has already led to multiple closures. SHADOWPRODUCTION How much tin is produced in Indonesia's shadow industry? As such material is by definition not detected by the country's Customs Service, it exists as a statistical blackhole. Indonesia's official export statistics capture flows of refined Tin, which is the only metal form that is supposed be shipped overseas. Both the Chinese and Malaysian Customs Departments are recording monthly Indonesian imports. According to World Bureau of Metal Statistics, Chinese imports totaled 1,192 tons during the first eight month of the year. Malaysia imported 642 tons of "ore and concentrates" in the same period. This could be just the tip of a very large iceberg. According to the chairman of Indonesian Tin Exporters Association, (ITEA), up to 12,000 tonnes of tin is illegally exported every year. Prabowo said that the shadow sector could represent up to 80% of the production in the Bangka Belitung area. Estimates will always differ but there is general agreement that the problem became much worse over the past year. The illegal production boom is reducing the capacity of the official sector. PT Timah attributed a drop of 32% in ore production year-on-year in the first half 2025 to the competition with the shadow industry. The ITEA expects a modest rebound to 53,000 tonnes this year. Last year, Indonesian exports fell to a record low of 46,000 metric tons. In theory, the closure of illegal activities should help compensate the official sector in terms of production. However, it is unclear how much compensation and for what period. CAULDRON Tin price has not been waiting to find out. It has risen by 10% in the last week, as time spreads have tightened. Only a few weeks ago, the LME cash price of tin was trading at $167 below the three-month price. This week, the price has risen to $105 as shorts have been forced to purchase their positions. The price response to the Indonesian announcement says a lot about the fragility and dependence of the tin chain on a few large producers. One of the largest tin mining operations in the world is still not operational. Man Maw, in the semiautonomous Wa State of Myanmar, is expected to reopen after a two year absence. The flow of raw tin materials to China is a mere trickle. This suggests that the mine has not yet reached its previous production level before the authorities closed it for an audit. The Bisie Tin Mine in Congo has been restarted after it was briefly suspended due to the M23 rebels' advance in March. The threat is still there. No one seems to have informed the M23 that the United States is leading the effort to resolve the conflict in eastern Congo, which has lasted for decades. Kony Ng’ang’a, one of the M23 leaders, sounded uncompromising in a recent interview with CNN. Tin traders had already enough flash points to worry about. Now they have another. These are the opinions of the columnist, an author for.
Gold rises above $3,900 for the first time due to safe-haven demand
Gold prices reached an all-time record high on Monday. They soared above the $3,900 per ounce level as investors sought out safe-haven gold amid the U.S. shutdown, economic uncertainty and expectations of future Federal Reserve rate reductions.
As of 0730 GMT spot gold rose 1.2% to $3,932.40 an ounce after reaching $3,944 in the earlier session.
U.S. Gold Futures for December Delivery climbed 1.2%, to $3.956.50.
A senior White House official stated on Sunday that Washington would begin mass layoffs if U.S. president Donald Trump determines that negotiations with Congress Democrats to end the partial government shutdown "absolutely are going nowhere".
The U.S. shutdown could be prolonged, which would have a negative effect on the U.S. economy. Independent analyst Ross Norman said that there is a general sense of caution among financial markets.
The gold price has increased by nearly 50% this year. This is due to strong central bank purchases, an increase in demand for exchange-traded fund (ETF) backed with gold, a lower dollar, and the growing interest of retail investors looking to hedge against rising geopolitical and trade tensions.
Norman added that the low participation in this rally and its primary drivers, central banks and investors with a longer-term perspective, rather than speculative purchasers, could indicate that any pullback may be milder than anticipated.
Stephen Miran, the Fed Governor, called for a rate cut aggressively again on Friday. He cited the economic impact of Trump's policies.
Various data, both from public and private sources, indicate that the U.S. labour market is weakening due to the shutdown of the federal government.
Investors now expect a 25 basis-point reduction at the Fed's meeting in this month. An additional 25 bp is expected in December.
UBS stated in a report that they expect gold to reach $4200/oz at the end of the year.
Gold that does not yield is a good investment in low interest rate environments and economic uncertainty.
In March, spot gold prices broke through the $3,000 per ounce barrier for the first.
Many brokerages are now bullish about the rally.
Silver spot rose 1.5% to reach its highest price in over 14 years. Palladium rose 1.2% to 1,276.10 and platinum gained 0.7% to $1616.
(source: Reuters)