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EU legislators support further weakening sustainability laws
After months of pressure, the far-right and centre-right joined forces in the European Parliament to support further reductions to the EU's corporate sustainability law. This comes after the U.S. government and Qatar and other companies have pressed for this. Last year, the European Union adopted its corporate sustainability due diligence (CSDDD). This directive requires that companies fix any human rights or environmental issues within their supply chains. Otherwise, they could face fines up to 5% global turnover. It has become a political hot potato, as countries such as the United States and Qatar have demanded that it be further weakened. The rules could disrupt their gas supply to Europe, they warned. The European Parliament voted on Thursday to require that only businesses with at least 5 000 employees and a turnover of 1.5 billion euros ($1.75 billion), should be compliant. They were also relieved from the requirement to outline their plans for meeting climate change commitments. CSDDD thresholds currently are 1,000 employees or 450 million euros in turnover. Due diligence rules were already delayed an additional year, to July 2027. Around 90% of the companies that were initially required to do so have been removed from this requirement. The CENTRE RIGHT and FAR RIGHT UNITE Jorgen Warborn is the Swedish center-right legislator who oversees the file. He said that the changes are among the most significant proposals to reduce red tape and save companies around 5 billion euro per year. This will help the EU to make up for its growth deficit against rivals like the United States. The EU parliament rejected proposals in October for a more radical easing of the rules. This prompted the centre-right European People's Party, with the support of far-right parties, to propose new amendments. Terry Reintke, co-president of the Greens and Orban's Le Pen, said: "They chose to unite with Orban and Le Pen in order to kill environmental and Human Rights laws that hold big companies accountable for their production processes." Patriots for Europe (which includes Marine Le Pen’s French National Rally, and Viktor Orban’s Fidesz, the Hungarian prime minister) said that the "cordon sanitaire", which was used to exclude non-centrist parties, had finally been broken. Due to the rightward shift in the EU assembly following last year's elections, these groups now have a majority. TotalEnergies, ExxonMobil and other companies have called on the EU to go further and withdraw this policy completely. They warn that it will make it more difficult for businesses in the EU. Ikea and Aldi are also companies that have expressed support for due diligence laws. The European Parliament will need to negotiate the final text with their counterparts in EU government. They aim to achieve this by the end 2025.
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JPMorgan: Almost a quarter of Russian oil exports are stuck in tankers
JPMorgan reported on Thursday that around 1.4 million barrels of Russian oil per day, or about a third, of the country's potential seaborne exports, are still in tankers due to the U.S. sanction against Rosneft, and Lukoil. In the first sanctions that President Donald Trump has imposed directly on Russia since his second term began, the U.S. gave itself a deadline of November 21 to end all business with Rosneft or Lukoil. The sanctions have caused Lukoil to struggle, forcing the company to sell foreign assets, and disrupting operations in Iraq, Finland, and Bulgaria. According to trading sources, the overall Russian oil exports are relatively stable. JPMorgan warned that after the November 21 deadline for receiving oil from sanctioned companies it could be difficult to unload cargoes. It said that "Russian oil exports have entered a new phase as sanctions against Rosneft, Lukoil and other companies are about to go into effect. This has caused its two biggest customers - India and China - to drastically reduce their December purchases." Traders reported earlier this week, that many ships loading in Russia's western port of Primorsk and Ust-Luga, and Novorossisk, list Port Said and the Suez Canal, as their destinations, but then continue to Asian ports, mostly India and China. The Russian oil sold at the lowest discounts in Asia in the last year is expected to be shipped eventually to China. (Reporting and Editing by Emelia Matarise Sithole)
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Tata Steel wants to extend import tariffs for some steel products into India
T.V. Narendran, the chief executive of Tata Steel India, hopes that the government will extend the import tariffs for some steel products in order to protect against imports from China and other countries. Narendran said on Thursday. Narendran, in an interview, said that although the import volumes in India are small, they still affect the market. Narendran stated that "China exports a lot" of steel globally, and added that Indian steel producers had no choice but to export due to the "over-saturation" of most markets by Chinese competitors. In April, India, the second largest crude steel producer in the world, imposed temporary import duties on certain steel products as a way to reduce imports from China. These tariffs expired in the last week. Narendran also said that Tata Steel's Europe-UK operations were impacted by U.S. Tariffs, as they had exported 800,000 metric tonnes to the U.S. He said that some of the impact had been passed onto customers. Narendran, the steel producer, said that the company is considering alternative markets, such as Latin America and parts of Europe, Africa, and the Middle East, to counter the effects of U.S. Tariffs. Koushik Chaterjee is the chief financial officer of Tata Steel. He said that Tata Steel also wants the UK government to implement import restrictions to stop cheap shipments entering the country. Chatterjee stated that "UK has literally become a dumping grounds for imports". The steel producer is currently finalising its total costs for decarbonising its Dutch plant. Chatterjee stated that the job cuts announced by the company in April have yet to be implemented in the Netherlands. Chatterjee explained that the negotiations with the union were taking time. INDIA OUTLOOK Tata Steel anticipates that steel prices will be 1,500 rupees per ton lower in India in Q3 than in Q2. Narendran stated that the demand in India was "quite strong", especially from automotives, oil, gas, railways, and construction sectors. Reporting by Neha arora and Sethuraman N R, Editing by Ronojoy Mazumdar
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Gold reaches a 3-week high amid US debt worries and Fed rate cuts expectations
The gold price rose to its highest level in more than three weeks on Thursday, as investors hoped that the reopening of the U.S. federal government would lead to an increase in debt. Meanwhile, delayed U.S. data on economic activity could shed more light on Federal Reserve policy. As of 1147 GMT spot gold rose 0.7% to $4.229.19 an ounce. This is its highest level since October 21. U.S. Gold Futures for December Delivery rose by 0.5%, to $4,234.10 an ounce. The resolution of the U.S. Government Shutdown will not have a significant impact on the trend, because it is expected to increase debt levels, said Hugo Pascal. The physical demand for gold and silver remains strong, and recent U.S. indicators indicate a weakening of growth. This is a favorable combination for metals' prices. The U.S. president Donald Trump signed legislation on Wednesday to end a 43-day shutdown of the government, which was the longest in U.S. History. This delayed important economic data, such as reports on jobs and inflation. The agreement will fund federal operations until January 30. However, the government expects to add an additional $1.8 trillion per year to its debt burden of $38 trillion. Fed Chair Jerome Powell warned against further easing in this year due to the lack of data. However, he cut interest rates by a quarter point last month. The U.S. Labor Department is urged to prioritise the November data on employment and inflation in order for Fed officials to have current information during their December policy meeting. According to a poll, 80% of economists believe that the Fed will cut rates next month by 25 basis points. Gold is usually a beneficiary of lower interest rates, as it offers no return and can be seen as a safe haven during times of economic uncertainty. Gold has risen 61% this year. It reached a new record of $4,381.21 in October, fueled by geopolitical and economic concerns, increasing ETF flows, and expectations for further rate cuts. Silver spot rose 0.6%, to $53.70 an ounce. This is a move towards the record high reached on October 17. Palladium dropped 0.5%, to $1,466.05. Platinum fell 0.1%, to $1,613.17.
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EDF, France's energy company, will offer more long-term contracts
EDF, France's energy company, said Thursday that it was looking to expand the scope of its long-term contracts by including more competitors and power consumers. EDF wants to secure an additional 10,6 terawatt hours (TWh), of long-term contracts with utilities, power distributors, and other large customers for delivery beginning in January 2027. This will reduce its exposure to volatile prices. Marc Benayoun, EDF's Executive Director in Charge of Client and Services, said, "The goal is for French industry to be efficient, sustainable and resilient." EDF has called for interest in contracts known as Nuclear Production Allocation Contracts (CAPN) after struggling to sign long-term agreements with industrial users who face weak demand. The market prices for the next year are much lower than those of long-term contracts. It is therefore difficult to convince customers to sign longer-term contracts. EDF has said that it is interested in medium-term contracts lasting 4 to 5 year, and the volume signed up for these contracts is more than twice as much as the 35 to 40 TWh of long-term contracts. Benayoun stated that many players want a contract with attractive prices and fixed terms after their experience during the energy crisis. EDF expects to produce between 350 TWh and 370TWh of electricity from its nuclear reactors domestically in 2026 and 2020, and the CAPN scheme is expected to cover almost 10% of that production. Benayoun, a reporter, said that the contracts would eventually be available to all European players. Former EDF CEO Luc Remont attempted to open contracts to deliver heavy industry outside France in the beginning of the year. This angered French industries and contributed to his removal a few months later. (Reporting and editing by Joe Bavier, Alexander Smith, and Forrest Crellin)
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After the US government shutdown, copper prices stutter on weak China data
After a four-day streak of gains, copper struggled on Thursday to continue its upward trajectory as the positive sentiment surrounding the end of the U.S. Government shutdown was countered by the weak lending data coming from China, the world's largest metals consumer. As of 1025 GMT, the benchmark three-month copper price on the London Metal Exchange had not changed much. It was $10,937.50 a metric ton. The price of copper rose by as much as 0.4% earlier in the day to $10,984, but fell short of the psychologically important $11,000 mark. Last month, copper reached a new record of $11,200 on fears over disruptions in mine supply. Ewa Manthey, ING analyst, said that for the rally to continue, stronger demand – particularly from China as the largest consumer – will be critical. Prices will be range bound for the time being. The longest government shutdown ever in US history was ended by President Donald Trump's signature of a bill on Wednesday. Investors have welcomed the reopening of the government, as it reduces uncertainty in the market and will allow them to access economic data again to gauge the U.S. Economy. China's new loans fell dramatically in October compared to the previous month. This was below expectations due to persistently weak borrowing demand. Investors await a number of economic data from China, which will be released this Friday. These include new home prices and retail sales as well as industrial output. Manthey stated that in the short term, disruptions to supply should keep copper prices at around $10,000. Other LME metals were flat at $2.894 per ton. Zinc fell 0.3% to $3,000, nickel fell 0.2% to $15,000, and lead was down 0.7% to $2.079.50. Tin rose 0.6% to $37,560.00 from its previous high of April. Data from Indonesia's trade ministry revealed on Monday that the country's tin refinement exports to China dropped by over 50% in October compared to last year, resulting in concerns about supply. (Reporting and editing by Rashmi aich, Leroy Leo and Leroy Leo; Additional reporting by Dylan Duan; and Lewis Jackson).
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The Russian rouble gains strength as oil companies repatriate their earnings before the US sanctions deadline
The Russian rouble gained against the U.S. Dollar and China's Yuan on Thursday, despite lower oil prices in Russia. Oil firms converted their earnings into roubles prior to U.S. sanctions taking effect. At 1020 GMT the rouble had gained more than 1% against the dollar, trading at 80.45, and was 0.5% higher at 11,31 against the Yuan at the Moscow Stock Exchange where it is traded the most. Washington introduced sanctions last month against Russia's two largest oil producers, Rosneft Lukoil as part of President Donald Trump's efforts for an end to Moscow's conflict in Ukraine. The deadline set for closing out transactions with these companies was November 21. The market is "thin", and can't absorb any currency surpluses, even if they are small. A dealer at a major Russian Bank said this. The dealer, who spoke under condition of anonymity, said: "As a consequence, the rouble has strengthened." He said that the rouble would begin to weaken in December due to the introduction of sanctions, and the low price for Russian oil. Since many Chinese banks distrust Western regulators, the sanctions will make it difficult for them to conduct transactions in foreign currencies, including the yuan. Last May, Russian Finance Minister Anton Siluanov stated that 90% of trade between Russia-China is done in roubles and Yuan. He did not specify the percentage. The trade between Russia and China was valued at $245 billion, a record. Finam, an Russian financial services firm, estimates that Rosneft, and Lukoil, account for up to 35 percent of the domestic sales in foreign currencies. The International Energy Agency reported on Thursday that Russia’s revenue from crude oil, refined products and liquefied petroleum gas fell in October because of lower export volumes and lower prices. However, Russian oil exports are still holding steady. (Reporting and editing by Joe Bavier; Gleb Brynski)
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Gold reaches a 3-week high amid US debt worries and Fed rate cuts expectations
The gold price rose to its highest level in more than a month on Thursday, as investors hoped that the reopening of the U.S. federal government would lead to an increase in debt. Meanwhile, delayed U.S. data on economic activity could shed more light on Federal Reserve policy. As of 1016 GMT spot gold rose 0.9% to $4,235.56 an ounce. This is its highest level since October 21. U.S. Gold Futures for December Delivery rose 0.6% to $4,240.10 an ounce. The resolution of the U.S. Government Shutdown will not have a significant impact on the trend, because it is expected to increase debt levels, said Hugo Pascal. The physical demand for gold and silver remains strong, and recent U.S. indicators indicate a weakening of growth. This is a favorable combination for metals' prices. The U.S. president Donald Trump signed legislation on Wednesday to end a 43-day shutdown of the government, which was the longest in U.S. History. This delayed important economic data, such as reports on jobs and inflation. The agreement will fund federal operations until January 30. However, the government expects to add an additional $1.8 trillion per year to its debt burden of $38 trillion. Fed Chair Jerome Powell warned against further easing in this year due to the lack of data. However, he cut interest rates by a quarter point last month. The U.S. Labor Department is urged to prioritise the November data on employment and inflation in order for Fed officials to have current information during their December policy meeting. According to a poll, 80% of economists believe that the Fed will cut rates next month by 25 basis points. Gold is usually a beneficiary of lower interest rates, as it offers no return and can be seen as a safe haven during times of economic uncertainty. Gold has risen 61% this year. It reached a new record of $4,381.21 in October, fueled by geopolitical and economic concerns, increasing ETF flows, and expectations for further rate cuts. Silver spot rose 1.2%, to $54.05 an ounce. This is a move towards the record high reached on October 17. Palladium increased 0.8%, to $1,485,26, while platinum remained at $1,615
Top Democrats criticize Trump for delaying China export curbs
Senate Democrats, including Senate Minority leader Chuck Schumer, attacked the Trump administration for suspending the measure that prevented thousands of Chinese firms from accessing U.S. tech in the latest round of trade negotiations with Beijing. They called it a "giveaway" of "key national security tools."
The rule was announced on September 29th and aimed to prevent sanctioned Chinese firms from using a system of subsidiaries to acquire key American equipment that they would otherwise be prohibited from receiving.
Last month, President Donald Trump agreed to defer this rule by a full year as part of a trade with Chinese leader Xi Jinping. In exchange, Beijing would suspend for the same time period its export restrictions on rare-earth minerals. These are key components for tech products that are largely controlled by China.
In a Wednesday letter, first reported by the Associated Press, Senators Ron Wyden and others called for Trump to reinstate the rule. They argued that its delay could put "American-developed advanced computer technologies at risk, as they may be used instead to advance China's agenda, rather than ours."
They wrote: "The suspension undermines U.S. security, and it will be much more difficult to stop the illicit diversion to Chinese state-affiliated companies of American-made advanced technology and semiconductors," We urge you to restore these controls and stop your giveaway of important national security tools.
Requests for comments were not immediately responded to by the White House or the Commerce Department which is responsible for export control.
The letter is a
Latest blowback
The Trump administration was criticised by China hawks of both parties for its suspension.
According to a report by WireScreen, the U.S. has placed export restrictions on roughly 20,000 more Chinese companies.
In their letter, the Democrats claimed that the one-year suspension reopens "a loophole" and gives "affiliates of foreign firms blacklisted the opportunity to restructure to avoid the rule."
They added that the delay is part of Trump's troubling tendency to "trade away national security" in order to make quick 'deals,' which are akin to a handshake, so as not only mitigate but also prevent trade wars he has created.
We urge you to reconsider your misguided approach and make sure that export controls in the United States are not used as a bargaining tool. The letter was signed by Elizabeth Warren, Chris Van Hollen and Jeff Merkley. Andy Kim, Ben Ray Lujan and Catherine Cortez Masto also signed. (Reporting and editing by Leslie Adler; Alexandra Alper)
(source: Reuters)