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The PM of Italy has announced that Italy will increase taxes on companies that speculate on energy price.
Giorgia meloni, the Prime Minister of Italy, said on Thursday that Italy was ready to increase taxes on companies who benefited from the rise in gas prices caused by the Middle East Crisis. Meloni reiterated in an interview with?radio broadcaster RTL102.5 that Italy is also in favor of freezing the ETS Carbon-Permit Scheme to soften the energy bills throughout the European Union. "We will stop all speculation." Meloni stated that he was ready to "react" if needed, including by increasing taxes on energy companies who may speculate on prices through their bills. Her comments come just a few weeks after Italy raised its IRAP Corporate Tax on Energy Firms to help fund a package of aid for?families? and businesses?, in a measure that would yield a?state coffers? around 1 billion euros ($1.16billion) by 2028. As part of a planned revision of the EU carbon markets later this year, EU leaders are looking at ways to reduce volatility. Meloni stated that the ETS scheme needs to be reviewed in order to not affect companies?producing energy using renewable sources. The Emissions Trading System, the EU's main climate change policy, requires power plants and industry to purchase CO2 permits whenever they pollute. It also caps the number of permits on the market to reduce emissions over time. Meloni stated that "we have always called for a separation of the ETS?cost from the pricing of renewable energy sources such as solar and hydroelectric power in order to reduce energy costs." Italy however, has been widely criticized for adopting last month a?reimbursement scheme that benefits thermoelectric producers. Green energy advocates have said the move will favour fossil fuel-based producers.
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China's five-year plan for AI calls for tech advancements and AI in all sectors of the economy
China's new five-year plan outlined its ambitions for the country to adopt artificial intelligence across the second largest economy in the world and dominate emerging technologies like quantum computing and humanoid robots. According to the plan, released Thursday in conjunction with the National People's Congress opening session, the country will "seize commanding heights" of science and technology?development?and "decisive advances in core technologies". Separately, a report from the country's State Planning Body also claimed that China is outpacing its rivals in AI and other key areas. It said that China now leads the world for research and development in areas such as AI and biomedicine. New breakthroughs have been made in the independent R&D on?chips. SWEEPING AI+ Action Plan The 141-page blueprint for the next five years, which included many socio-economic policies and targets, mentioned AI over 50 times. It also included an "AI+ action program". China is focusing on technology to deal with its rapidly aging workforce, its looming population crisis, and its fierce competition with the United States for supremacy in core technologies. It also reflects the dramatic progress made by Chinese AI developers, such as DeepSeek. The plan includes specific measures such as experimenting with robots in sectors that are experiencing a?labour crisis and deploying AI agents who can perform tasks without human guidance. Beijing's goal is using AI and robots to boost performance and productivity in many different sectors, including manufacturing, logistics, education, and healthcare, said Kyle Chan, a fellow at Brookings Institution, a think tank that focuses on Chinese technology. In the first paragraphs of Premier Li Qiang's main government report, the government also stressed its commitment to the technology sector - which it refers to as "new quality production forces". This was a much more prominent report than the one from last year. China's dependence on U.S. technology such as planes and chips has caused frustrations as trade tensions have risen. Both sides have imposed export controls on key resources and products in their tech war - advanced chip technology in Washington's case and rare earths in Beijing's case. HUMANOID RONTS, 6G AND QUANTUM The five-year plan and government work report outlined plans to increase investment in areas such as machine-brain interfacing, quantum computing, and 6G. The plan also vowed to make "key breakthroughs" in nuclear fusion technology, build a space-earth integrated quantum communication network, create scalable quantum computers and show the feasibility of building an?station for lunar research. The document also highlighted China's aim to become the world leader in frontier R&D, by "accelerating breakthroughs and?foundational technology" and investing in fundamental research. It also emphasized cultivating world-class talent in science and technology. The Chinese government has also committed to building "hyperscale" computing clusters, supported by cheap and plentiful electricity. "Open source wasn't mentioned before in previous reports and is also a key difference between the Chinese AI and American AI approaches," Tilly Zhang, a technology and industrial policy expert at Gavekal dragonomics, said. "I think China has studied it very carefully and decided that open-source AI will be a flagship strategy, and a competitive edge against the United States."
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Sources say that 14 Nigerian soldiers were killed by Islamist militants in Borno State.
Written by Ahmed Kingimi and Adewale Klawole MAIDUGURI (Nigeria), 5 March - Islamist militants killed at least 14 Nigerian troops and injured several others in two separate attacks against army bases in Borno state's northeast on Tuesday evening, according to?security? sources. Insurgents are intensifying their attacks against the military. Three army sources said that suspected Islamic State West Africa Province fighters attacked the Nigerian Army base in Ngoshe, Gwoza District, and killed at least nine soldiers as well as a local imam. Sources who refused to be identified because they weren't authorised to talk to the media said that the attackers forced troops to flee their base and seized weapons and ammunition, before abducting unknown numbers of women. Two other sources familiar with the attack confirmed that militants attacked another'military base' in Pulka in the Gwoza district further north, where they killed five soldiers including the commanding officer. Two other sources with knowledge of the attack said that five soldiers, including a commanding officer, were killed in an attack on another?military base in Pulka, further?north, Gwoza district. Insurgents are launching coordinated attacks to limit the military's ability to bring in reinforcements quickly and stretch it. The Nigerian Army has not responded to a request for a comment. Nigeria's army has been pushing further?into the insurgents strongholds?in the northeast as part of a new offensive against militants groups. ISWAP, Boko Haram and other militant groups continue to launch large-scale attacks despite repeated operations. They do so by exploiting the difficult terrain and porous borders in Nigeria's arid northeast, as well as a weak government presence. Borno is the epicenter of the 17-year Islamist rebellion, which has claimed thousands of lives and forced 2 million people to flee their homes, according humanitarian aid groups. (Reporting and editing by Kate Mayberry, MacDonald Dzirutwe; writing by Ahmed Kingimi & Adewale Kolawole)
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South Korean stocks rebound 9.63% from the worst crash ever
South Korea's benchmark KOSPI closed up?9.63% on Thursday after surging as high as 12.2%. This?erased most of its worst daily drop from a previous day,?buoyed?by hopes for progress in U.S. diplomacy with Iran. As of 0630 GMT the benchmark KOSPI closed up?490.36 or 9.63% at 5,583.90, recovering most of Wednesday's loss of 12.06%. Among the index's heavyweights Samsung Electronics gained 11.27% while SK Hynix rose 10.84%. Battery maker LG Energy Solution rose 6.91%. The rebound came after a New York Times article on Wednesday, which claimed that the Iranian Ministry of Intelligence was willing to engage in discussions with the U.S. Central Intelligence Agency (CIA) to seek an end to the war. This report cited officials who were briefed about the issue. At the opening, the share index rose to 5,685.47. "Oil prices have stabilised over night and foreign investors are more confident about a possible resolution." The recovery is strong, especially for chips", said Seo Sangyoung, analyst at Mirae Asset Securities Co. Wall Street's resilience was evident despite the Middle East conflict, as oil prices in general stabilised. Hyundai Motors and Kia Corp, its sister company, both saw their shares rise by 9.38% each. POSCO Holdings, a steelmaker, increased by 7.78%. Samsung BioLogics, a drugmaker rose by 8.64%. The Korea Exchange activated a sidecar trade curb on the KOSPI index and junior KOSDAQ, briefly halting program trading for five minute after stocks surged. The dollar was traded at 1.468.1 on the settlement platform onshore, which is 0.35% less than its previous close of 1,462.9. President Lee Jae Myung said that the government is ready to take'market stabilising measures' if necessary. We must respond proactively to the increased volatility of financial markets. Lee, at a policy meeting, said that we should speed up our policy efforts as well as implement and manage the 100 trillion won programme for market stabilisation. He was referring the emergency fund of the government that can be used in times of severe market declines. SK Hynix, a peer company, gained 16.02 %. Battery?maker LG Energy Solution rose 7.90%. Ninety-two of the 926 companies that were traded advanced, while 21 fell. The foreigners sold shares worth 144.5billion won. Reporting by Cynthia Kim, Editing by Sumana Wong, Jacqueline Wong, and Tom Hogue
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Singapore's PCS declares petrochemical force majeure, a letter shows
According to a letter reviewed by three people familiar with the issue, the Singaporean petrochemical company PCS declared force majeure for shipments due to the Middle East conflict disrupting maritime transport and supply chains. In the letter, PCS stated that "the duration and extent of the Force Majeure is uncertain." A legal term that means a company is not able to fulfill its contracts due to forces beyond their control, Force Majeure. No details were given on the products that would be affected. PCS didn't immediately respond to a comment request. One of the sources stated that the company will still likely?fulfill some deliveries to its customers, but volumes will be reduced, adding that operations at their site are still continuing. Two other petrochemical companies - Indonesia's Chandra Asri, and South Korea's Yeochun NCC -- have also declared force majore on their supply?this week. The Middle East conflict has had a devastating impact on Asian cracker operators, since most of their feedstock is derived from the Gulf. Naphtha, the raw material for petrochemicals that is used in consumer goods such as paints and plastics. According to PCS's website, it operates two crackers on Singapore's Jurong Island which can produce a total of?1.1M metric tons of ethylene per year.
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Asia's refining margins soar to the highest level in almost 4 years due to disruption of supply caused by Hormuz
According to data and analysts, Asian refining margins are at their highest level since 2022 due to Iranian threats against shipping through the Strait of Hormuz. These threats have disrupted crude flow and forced refineries to reduce runs. As a result of the U.S. - Iran war, trade has been suspended through the chokepoint which typically handles over 20% of global daily oil supplies. Singapore's complex refinery margins LSEG data shows that the market was roiled on Wednesday by fears of a further reduction in refining runs, which could lead to a tightening of fuel supplies. China and Thailand also suspended their fuel exports, which could affect the supply of fuel in the region. JET FUEL, ?DIESEL MARGINS LEAD THE SURGE In Asia, jet fuel and diesel products saw the highest margins. LSEG data revealed that the margin for aviation fuel?broke $52 a bar on Wednesday, its highest level since June 2022. It was more than twice as high as it had been Friday. The price of 10ppm sulphur gasoline has risen to $48 per barrel, its highest level since August 2022. This is indicative of an imminent shortage of feedstocks for refineries due to the dependence on Middle Eastern crude oil that is currently clogged at the Strait of Hormuz, said June Goh senior oil market analyst of Sparta Commodities. Other sources of crude will arrive in our region between one and two months. Refineries must reduce their intake in order to avoid premature shutdown," Goh said, adding that oil products stocks would deplete rapidly if refineries did not receive crude soon. Asian refiners are meanwhile struggling to secure replacement crude cargoes. Some Chinese refiners are already cutting runs while India is looking for alternatives for crude imports. NAPHTHA, FUEL OIL Middle East also tops the list of suppliers for petrochemical feedstock, naphtha, and fuel oil for ship refuelling. Asia's naphtha market This week,?supplies tightened. Petrochemical producers in Asia's top producer are, however, preparing to stop operations and reduce run rates, as buyers prepare for delays and higher prices. On Wednesday, cracks in high-sulfur fuel oil reached a record-breaking price of nearly $8 per barrel. According to Vortexa, oil consultancy, residual?fuel exported from the Gulf must pass through Strait of Hormuz. This accounted for 9% of the global seaborne flow in 2025. The traders claim that global oil majors tried to 'cover fuel needs by shipping products from?West even if arbitrage economics were not feasible. Exxon Mobil will ship fuel to Australia from the U.S. Gulf Coast in order to meet its own import needs.
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China plans to reduce carbon dioxide emissions per unit GDP by approximately 3.8% in 2026
According to documents released by the Chinese government on Thursday, China will reduce its carbon intensity - or carbon emissions per unit gross domestic product - by 17% in its current five year plan. This is an acceleration of the previous period between 2020 and '2025. China's new five-year plan released on Thursday called for the replacement of 30 million metric tonnes per year with renewables, and pushing towards peak coal. However, it did not set further limits on coal use. China's carbon intensity was reduced by 12% during the five-year plan which ended last year. According to a report by China's National Development and Reform Commission, its top planner, China plans to reduce its carbon intensity in 2026 by about 3.8%. China expects its carbon emissions to peak before 2030. Some analysts were disappointed by the new carbon intensity goal. The Centre for Research on Energy and Clean Air conducted research that found China needed to 'accelerate the pace of reductions in carbon intensity to 23% within the next five-year period after falling behind its Paris Agreement commitment to cut carbon intensity by more than 65% between 2005 and 2030. "How fast carbon intensity can be reduced depends largely on how much renewable energy is available," said Yao Zhe, Greenpeace East Asia's policy advisor in Beijing. The NDRC report stated that China would also implement a mandatory minimum quota for renewable energy consumption in the next five-year period. In a speech last year to the United Nations, President Xi Jinping stated that China would increase its already largest wind and solar energy capacity by six times, from 2020 levels, to 3,600 gigawatts in 2035. China will likely exceed this target, based on current capacity building levels. China has yet to announce a clear target for emissions reductions by 2030. Xi stated in a speech at the United Nations last year that China will peak its carbon emission?by 2030, and reduce emissions between 7% and 10% by 2035. Carbon emissions in China fell by 0.3% last year, mainly due to the reductions made in the sectors of 'transport, power and cement. It is still unclear whether they will rise again before a peak. This year marks a planned shift from focusing solely on the energy intensity in its economy to focusing more on the carbon intensity. The NDRC's?plan did not provide any further details about the "dual-control" system or how it would work. The NDRC stated that it would make efforts to?replace coal with clean energy and?phase out outdated coal-fired facilities and equipment. It did not mention the previous commitment to phase out coal in the five-year plan from 2026 to 2030. The five-year plan states that China will strive to reach its peak coal and oil consumption during the period. (Reporting and editing by Christian Schmollinger, Thomas Derpinghaus and Lewis Jackson)
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Russell: The huge increase in the price of jet fuel is a sign that Iran's war will cause more pain.
The sudden increase in jet fuel costs in Asia is a warning sign that the economic impact of the Middle East war is soon to be felt by energy consumers. Jet fuel prices in Asia's main trading hub, Singapore, rocketed by 72% on Wednesday to a record $225.44 per barrel, due to concerns about future supplies, given the disruption of approximately 20 million barrels of crude oil and refined products shipped through the Strait of Hormuz. Jet kerosene - The spot price The price of oil has risen 140% from the closing price of $93.45 per barrel on 27 February, the day before Israel and the United States launched their aerial bombing campaign. The market is not convinced that the U.S. president Donald Trump's efforts to ensure that tankers can transit the narrow waterway, which carries around one-fifth the global oil consumption are worth it. Jet fuel, which is stored in special tanks and has a low inventory level, is the part of crude oil that's most vulnerable to supply disruptions. Due to the surging spot prices, the profit margins for producing a barrel jet kerosene using Dubai crude have jumped up to over $100 per barrel. This level suggests that market participants expect a severe supply in the coming weeks. Jet fuel prices are likely to have risen far more than what would be justified by the worst-case scenario of a prolonged closure of the Strait of Hormuz. It's important to note that Asian refiners are showing signs of increasing stress. Some plants have reported reducing their operating rates in order to conserve crude stocks, while other plants have brought forward maintenance. Two sources familiar with this matter confirmed on Wednesday that India's Mangalore Refinery & Petrochemicals has suspended its fuel exports. About 40% of the refined fuel produced by the state-run refiner in Karnataka's southern state is exported. Other refineries are likely to follow MRPL, particularly those in India. India sources most of its crude oil from the Middle East, and will be battling to find alternatives suppliers on short notice. China has asked companies to stop signing new contracts for the export of refined fuel and try to cancel any shipments that have already been committed. This was reported by several sources in industry and commerce on Thursday. This would have a dramatic effect on regional markets if confirmed, as China has a large crude oil stockpile and spare refining capacities. MEDIUM CRUDE SHORTAGE The oil that doesn't make it through the Strait of Hormuz tends to be medium-sour, which is prized for the higher yield of middle distillates like jet kerosene or diesel. These grades are lighter, and produce more distillates like gasoline and naphtha. Even if refiners maintain their processing rates, it is possible that they will still be unable to meet the demand for middle distillates and end up producing too many light distillates. On Wednesday, the profit margin in Singapore for producing a barrel of gasoil (the building block for jet fuel and diesel) jumped by 30.4% to $47.69. The price of oil has doubled from February 27 when it closed at $21.90 per barrel. It is now at the highest levels since the Russian invasion of Ukraine in February 2022. These margins will soon reach retail fuel costs in Asian countries that have?market pricing on products like gasoline and diesel. Fuel prices rising sharply will cause inflation, affect consumer spending and halt some capital investments. Central banks may even consider raising interest rates. The bigger problem is that, even if the conflict between Iran and the West is resolved in the next few weeks with the result of free movement of vessels through the Strait Of Hormuz the damage caused by the current disruption has now been locked into the supply chains. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
China announces economic measures that will boost iron ore prices
Iron ore futures advanced on Thursday, as the world's largest consumer China announced an array of economic measures which fueled optimism about steel and iron ore demand. The?world's?second-largest economic powerhouse announced plans to increase domestic consumption, stimulate the housing market and curb steel overproduction that has been suppressing prices. The May contract for iron ore on China's Dalian Commodity Exchange was 1.27% higher, at 759 Yuan ($110.09), per metric ton. As of 0713 GMT, the benchmark April iron ore traded on Singapore Exchange was up 1.03% at $99.8 per ton. China's 15th five-year-plan set an economic growth goal of 4.5%-5% by 2026. This is a slight decrease from the 5% rate achieved last year, but within analyst expectations. Beijing has room to address weak domestic consumption and curb industrial excess. The country also pledged to reduce the production of commodities and establish a mechanism to control carbon emissions for the industry. It will also expand the coverage of the national market of carbon-emissions trading between 2026-2030. The world's largest steel exporter also said it would increase efforts to eliminate outdated production capacity, and strengthen strategic resource reserves. China will also strive to stabilise the real estate market, take steps to improve housing supply and better utilise ?existing housing stock, including by purchasing unsold homes for use as government-subsidised ?housing.
The country's...prolonged housing market was once its largest consumer of steel. However, it has now ceded that position to manufacturing. The property market will boost the demand for steel and iron ore. Coking coal and 'coke', which are used to make steel, also fell on the DCE. The declines were 0.36% & 0.06% respectively. The Shanghai Futures Exchange's steel?benchmarks were mixed. Rebar rose 0.1%, while stainless steel rose by 0.42%. Hot-rolled coils fell 0.19%, and wire rods declined 0.39%.
(source: Reuters)