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Iceland's view of the Atlantic Ocean current collapse as a security and existential risk
Iceland's climate minister said that the government has classified the collapse of an Atlantic Ocean current as a threat to national security and an existential concern, which allows it to plan for worst-case scenarios. Warm water is brought from the tropics to the Arctic by the Atlantic Meridional Overturning Circulation (AMOC). This warm water flow helps keep Europe's cold winters mild. Scientists warn that the flow of the Atlantic Meridional Overturning Circulation (AMOC) could be disrupted by the cold water from Greenland melting the Arctic ice. The collapse of AMOC would trigger a new ice age in which winter temperatures in Northern Europe would plummet to extreme cold, resulting in more snow and ice. AMOC collapsed before - most notably, just before the last Ice Age ended 12,000 years ago. Iceland Climate Minister Johann Pall Johannsson stated by email that the AMOC is a threat to national security and resilience. This is the first instance that a climate-related phenomena has been brought before the National Security Council in a formal capacity as an existential threat. Johannsson stated that Iceland's Ministries will be alert and coordinate a response as the issue is elevated. The government is currently evaluating what additional research and policies it needs, while working on a policy for disaster preparedness. The risks being assessed cover a wide range of topics, including energy security and food safety as well as infrastructure and international transport. A collapse of the Atlantic current could have far-reaching consequences that extend beyond Northern Europe. Scientists say it could destabilize rainfall patterns that subsistence farmers in Africa, India, and South America have relied on for decades. Climate change could contribute to a faster warming of Antarctica. The sea ice that surrounds the southernmost continent, as well as the ice sheets on top are already threatened by climate change. Scientists warn that the global temperature is continuing to rise and that a collapse of the AMOC could be inevitable in the next two decades. The Nordic Council of Ministers sponsored a workshop called "Nordic Tipping Week", in which 60 experts assessed how society could be affected. Organizers said they are currently finalizing the recommendations that came out of the meeting. Aleksi Nummelin is a physical oceanographer with the Finnish Meteorological Institute. Scientists from over 30 universities and organizations raised the alarm on Monday about the rapid thawing Earth's glaciers and ice sheets. Climate ministries and meteorological services in Northern Europe have said they will fund more research, while also evaluating possible risks as part of their climate adaptation plans. Ireland's Weather Service said that its scientists briefed Ireland's Prime Minister last year, and a Parliamentary Committee last month. Norway's Environment Ministry said that it is "seeking new research to further our understanding" of AMOC before deciding whether or not to classify AMOC a security threat. Britain has said that it is following scientific reports which suggest an abrupt collapse in this century will be unlikely. It has also invested more than 81 millions pounds in research to determine when Earth's climate system might reach a point where there is no turning back. The tipping point could be very close, said Stefan Rahmstorf, oceanographer and climate scientist at Germany's Potsdam Institute for Climate Impact Research. Iceland is taking no chances as the rate of global warming continues to accelerate and greenhouse gas emissions continue their rise. Johannsson stated that extreme weather conditions could have a serious impact on our ability to maintain agriculture and fisheries which are vital to our economy and our food systems. We cannot wait until long-term, definitive research is completed before taking action." Reporting by Ali Withers in Copenhagen and Stine Jacobsen; editing by Katigle Daigle and David Gregorio
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Sources say that the volume of Saudi Arabian term oil imported by Chinese refiners will drop in December
Several sources familiar with the situation said that Saudi Arabia will export to China at least 36,000,000 barrels of crude, a slight decrease from the previous month. As some Chinese refineries prepare for maintenance, and independent refiners wait for Beijing's 2026 import quotas, the expected drop in oil supply for the second consecutive month from the top oil exporter to world's biggest importer comes at a time when many refineries in China are preparing for maintenance. Sources said that one of the Chinese buyers has reduced their December volume because they have already lifted the majority of their full-year contract supply. Data showed that December's volume was the lowest since April and a drop from 38 million barrels of oil in November. The shortage of import quotas available to independent Chinese refiners until 2025 has led to an increase in the price of refined petroleum products. Floating oil storage In Asia. India, on the other hand, will increase its crude imports in December from Middle Eastern producers Saudi Arabia and Iraq, as Indian refiners search for alternatives to Russian barrels.
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Copper prices rise as US interest rate outlook and shutdown talks are in focus
Copper prices rose on Wednesday, as investors looked forward to progress in resolving the long-running U.S. shutdown. The Shanghai Futures Exchange's most active copper contract closed the daytime trade up 0.16% to 86,840 Yuan ($12,191.49) per metric tonne. As of 0705 GMT, the benchmark three-month price for copper showed minimal movement as well, with a 0.06% increase to $10,833.5 per ton. ADP, a payroll processor, reported on Tuesday that companies in the United States lost more than 11,00 jobs during the week ending in late October. However, it had previously stated that the month of October saw a total gain of 42,000 new jobs. Recent signs of a softening in labor conditions were bolstered by the ADP report. This alternative labor data is unavailable because of the U.S. Government shutdown. Fed officials have cited the same trends to argue for another rate reduction in order to support growth. The expectation of a rate cut weighed heavily on the U.S. Dollar, giving commodities that are traded in greenbacks some support. Dollar-priced commodities are more attractive to investors who use other currencies when the dollar is weaker. Meanwhile, the longest U.S. government shutdown in history is nearing a possible end, as members of the Republican-controlled House of Representatives returned to Washington on Tuesday for a vote on a bill to fund federal agencies. Market participants stated that a possible resolution would reduce the near-term uncertainties and restore the flow key economic data. However, the risk sentiment was still cautious. Since Monday, copper has gained three days, but it was a slow increase due to a softening demand, particularly in China, the biggest consumer. Citi analysts stated in a report that consumption from Chinese end users of copper was flat in September. However, ex-China consumption grew by 1% annually. However, they expect copper to remain near $11,000 per ton, despite the weak demand in the near term. They also note that copper could rise to $12,000 sooner than their forecast for mid-2026, if new drivers are discovered. Aluminium, lead, tin, zinc, and nickel all fell in the SHFE base metals. Aluminium gained 0.66% on the LME, while lead rose by 0.48%. Tin grew by 0.23%, nickel fell 0.29% and zinc remained unchanged.
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British utility SSE raises $2.7 billion in equity to fund investment plans
The British utility SSE announced a five-year investment program worth 33 billion pounds ($44.29billion) on Wednesday. This plan is partly funded by an equity raise of 2 billion pounds, and aims to upgrade UK's regulated electric networks as well as its renewables business. The British power company stated that about 80% of planned expenditures, or 27 billion pounds will be spent on upgrading the regulated electric networks. The remainder, however, will be invested in renewables and flexible assets. The plan is funded by a combination of cash flow generation, increased borrowing and equity placements. It also includes plans to sell assets worth about 2 billion pounds. SSE Chief Executive Martin Pibworth stated that the Transformation for Growth Investment Plan is based on an opportunity once in a generation to upgrade the UK's electricity network and create a cleaner, safer and more affordable energy supply. Power generator and network operator reported a 28% drop in adjusted first-half pretax profit for the six-month period ended September 30. This was due to lower output and unfavorable conditions. ($1 = 0.7451 pounds) (Reporting by Yamini Kalia, Ankita Bora and Yadarisa Shabong in Bengaluru; Editing by Sumana Nandy, Subhranshu Sahu and Rashmi Aich)
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Voestalpine does not expect a change in the tough environment as revenue for half-year dips
Voestalpine, an Austrian steel manufacturer, reported lower half-year revenues on Wednesday. The market had expected this and the company said that it did not expect any improvement in the economic climate in the months to come. The revenue fell from 8 billion to 7,59 billion euros (8,85 billion dollars) in the first six months of the financial year 2025/26. This was in line with the median forecast of LSEG's analysts. The company that makes specialty steels for the automotive industry said they did not expect economic conditions to improve over the next few months. They would continue with reorganizational measures, which could include capacity reductions. Voestalpine said that a decision will be taken by the end the year on the possibility of capacity adjustments to the Kindberg site. This is where steel tubes are made for industries like oil and gas and construction, as well as renewable energy. By September 30, the company had 4,1% fewer workers than at the same time last year. The auto industry has been affected by the weak demand, growing competition from China and the U.S. tariffs on imports. The Linz group reported that the demand for automotive components, which accounted for 30% of the company's revenue in the previous financial year, had been weak. However, the demand remained steady at a high level at the steel division. It added that the automotive component segment was still affected by the extremely low automotive production in Europe, and particularly in Germany.
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Ukraine suspends Justice Minister amid Energy Corruption Investigation
The Prime Minister of Ukraine announced on Wednesday that the Ukrainian government had suspended Justice minister German Galushchenko following an investigation into corruption within the energy sector. Seven individuals have been charged by Ukrainian authorities in connection with an alleged $100-million kickback scheme that involved senior energy officials. The scandal has caused anger among the public and brought attention to Kyiv's fight against corruption. His ministry announced on Tuesday that Galushchenko was under investigation for his previous role as Energy Minister. The National Anti-Corruption Bureau did not mention if this case was related to the investigation of energy corruption. Galushchenko endorsed the decision of the government, writing on Facebook that "suspension during the course of the investigation would be a civilized and appropriate scenario". Galushchenko said, "I will defend myself and prove my case in the legal arena," without revealing more information about the reasons for the investigation. The public is sensitive to accusations of kickbacks, especially when the country faces daily blackouts before winter even arrives. This is because the country has been fighting off Russian attacks against its infrastructure. (Reporting and editing by Anastasiia Mlenko, Alex Richardson and Kim Coghill)
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Nextchem, an Italian company, plans to go public when the market recognizes energy transition's value
Nextchem, an energy transition unit within the Italian engineering group Maire aims to be listed, according to its managing director. He added that the listing will happen once the parent company deems the market value high enough. In an interview, Nextchem's executive Fabio Fritelli said: "We are prepared to list as soon as 2026. But we are not in any hurry." Nextchem, a company that develops technologies to decarbonise industry and energy, reported last month a nine-month core profit of 80 million euro ($93.30 millions), an increase of 31% on yearly basis. Fritelli stated that Maire's market value is based on the unit’s 2025 results. This value is well above the price tag of 1.2 billion euros the market currently assigns to Nextchem. He said that the gap is a reflection of a difficult period for the sector as it transitions to a clean energy future amid the political changes in the United States. The managing director stated that the current market multiple is around 10-12. This is a low multiple based on core earnings, which is used to determine a company's worth. Only when the market is prepared to accept a multiple that is closer to the average historical sector multiple of 15-16, or even higher, will we consider an IPO." Maire owns 82% of Nextchem. Azzurra Capital, an investment fund, holds the remaining 8%. Fabrizio di Amato, Maire's principal shareholder, and Abu Dhabi investor Yousef Al Nowais both own 5%. Fritelli stated that Nextchem was working on the acquisition of two Italian companies by the end this year, which could total between 100-150 million euros. Nextchem has partnered with newcleo, a small modular reactor company. Fritelli stated that Nextchem would eventually increase its stake in newcleo to 5%. Newcleo announced on Monday that it is considering building 20 nuclear reactors in the United States. It cited new investment opportunities. "Newcleo went to the U.S. where it found partners who had much deeper pockets. Fritelli warned that there is a danger of it accelerating investment in the U.S., at the expense Europe. ($1 = 0.8575 euro) (Francesca Landini contributed additional reporting, Gavin Jones edited the article)
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Why do multilateral banks face pressure to reform their policies? ?
World Bank and multilateral development bank (MDB) are being pressured to provide more assistance to poor countries that are suffering from energy crises and climate disasters. What you should know is: What are Development Banks and what do they do? These banks, which can be either domestic or international, are funded primarily by national budgets and help to tackle development challenges with technical assistance grants and low cost loans. Some banks may have a singular goal in mind, like subsidizing housing for farmers or helping them through difficult times. Many international or "multilateral" development banks, such as the World Bank and African Development Bank, have broad mandates that include reducing poverty or driving economic progress. These banks, with their high credit ratings can offer better loan terms and take a longer-term view of investment potential. This is especially important for countries in developing regions that have less access to the capital markets. Why are they being asked to reform? The countries are essentially asking the MDBs for more funding and to move faster to assist countries in reducing greenhouse gas emissions, preparing for rising sea levels and hotter days, and addressing other challenges associated with a warmer climate. MDBs are key players in the distribution of climate finance, especially for projects that have no clear return on investment other than saving lives. These banks have not moved as much money as experts at the U.N. say is necessary. MDBs distributed $137 billion of climate finance last year. Nearly 40% went to wealthy countries, and only 30% was allocated to adaptation projects. According to a U.N. Report released last week, developing countries will need $310 billion for just adaptation by 2035. Experts estimate that the annual bill for all climate finance will be in the trillions of dollars, including clean energy initiatives to reduce carbon emissions. The MDBs are hoping that the reforms will attract more private investments to their projects. The banks mobilized another $132 billion in private investment for climate action last year. What is likely to happen at COP30? The COP30 summit is going to put pressure on countries to demonstrate progress in increasing climate finance beyond the commitments made. The countries that finance these banks, and those who sit on their boards play a major role in determining the pace and direction for reform. A group of MDBs released a statement on Monday reaffirming its commitment to "accelerate" and "scale up" their support for countries. The statement also included guidelines for attracting private money for nature investments. Many groups have also announced new deals with developing countries. The European Investment Bank, for example, pledged $350 million on Tuesday to support women-led business and renewables within the Amazon region. What has the World Bank done so far? As part of the so-called Evolution Roadmap, which aims to increase lending capacity and accelerate approvals, Washington's World Bank is examining a number of changes. Some ideas include making sustainability criteria or resilience criteria for loans, and prioritizing projects that secure essential public goods. This year, the reform efforts of the bank have been complicated by the United States' biggest shareholder. The United States has pushed back against the bank's mandate including climate action as well as calls for a focus on poverty reduction and development. (Reporting and editing by Katy Daigle, David Gregorio, and Simon Jessop)
Investors cash out as gold rally cools, dollar edge higher
Gold prices fell on Wednesday. They were dragged down by a slight recovery in the dollar, and by profit-booking. The precious metal had risen to a three-week-high a day before on the expectation of further interest rate reductions by the Federal Reserve.
As of 0640 GMT spot gold was down 0.2% to $4,116.65 an ounce after reaching its highest level since October 23.
U.S. Gold Futures for December Delivery edged up 0.1% to $4,121.70 an ounce.
Tim Waterer, KCM Trade's Chief Market Analyst, said that the dollar's decline has helped gold and silver. Both metals have seen gains in this week.
Gold is trading above $4,100, and the precious metal will continue to move higher if U.S. macroeconomic data continues to support additional monetary policy ease.
The dollar index was 0.1% higher than its rivals, and set to snap a five session losing streak. This made gold less appealing for holders of other currencies.
The U.S. Senate approved a deal Monday to restore funding for the federal government after a record-long shut down that affected millions of food benefits, caused hundreds of thousands of federal employees not to be paid, snarled up air traffic and delayed the release economic data from the government.
Members of the U.S. House of Representatives headed back to Washington to vote on a measure that could end the shutdown.
According to CME's FedWatch, traders are now pricing in an approximately 68% chance that the U.S. Central Bank will reduce rates by 25 basis point next month. This is up from 64% the previous session.
Gold that does not yield tends to perform well when interest rates are low and economic uncertainty is present.
Fed Governor Stephen Miran stated on Monday that a rate cut of 50 basis points would be appropriate in December. He noted that the inflation rate was falling, while the unemployment rate was rising.
SPDR Gold Trust is the largest gold-backed ETF in the world. Its holdings increased 0.41% on Tuesday to 1,046.36 tons from 1,042.06 tonnes on Monday.
Silver spot rose 0.5% per ounce to $51.46, platinum fell 0.3% to 1,580, and palladium declined 0.7% to $1434.25.
(source: Reuters)