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China's new tracking system increases scrutiny of rare earth magnets
Three sources confirmed that China has implemented a tracking system in its rare earth magnet industry, as export restrictions are beginning to isolate customers from around the globe. Two sources briefed on the issue and two others familiar with it said that the national tracking system went into effect this week and requires producers to provide extra information online, including trading volume and client names. China, the world's biggest rare earth magnet exporter and supplier, in April, placed export restrictions on several magnets and seven medium-to-heavy rare earth elements. Exporters were required to obtain licenses. The delays in getting approvals has disrupted supply chains, affecting automakers, semiconductor firms and others. Global automakers have already begun to shut down some production lines, as they run out of reserves. Beijing announced high-level plans in June to create an information tracking system for rare earths products. However, the subject was not mentioned again until this week, according to a source familiar with the issue. China's export restrictions on rare earths, magnets and other products - in which it has a near monopoly - may become permanent. In the U.S., and elsewhere, there was hope that this would be eliminated as part of the trade truce reached in Geneva last week. Exports tend to gradually rebound in cases where China imposes export restrictions on metals. This is because exporters are required to apply for and receive licenses. Tim Zhang, the founder of Edge Research in Singapore, said: "Our current hypotheses is that China will continue to control its exports on rare earths as it's an ace card China can hold." Beijing's goal is to strengthen its control of the sector and crackdown on illegal mining, smuggling and tax evasion. A fourth source, who was also briefed about the issue, said that Beijing has a long-term plan to track all rare earth production chains, not just magnets.
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Thames Water's creditors are aware of a "short window" to save the company.
Thames Water's senior creditor said that there was a "short window" to a market-led recovery of the water company, after U.S. Private equity firm KKR withdrew from a multibillion pound financing plan on Tuesday. The creditors announced on Wednesday that they had presented a long-term solution to the problems of Thames Waters. The water company in Britain, the largest, is heavily indebted. On Tuesday, KKR pulled out of an equity investment worth about 4 billion pounds. The group of senior creditors said that they were stewards with a track record and could provide "substantial new investment" in order to turn the company around under a new leadership. The Creditors stated that Thames Water needed an urgent and fundamental reset. There was a short window of time in which a solution based on the market could succeed. According to a source near the creditors, corporate troubleshooter Mike McTighe is providing advice to them. He could be a candidate to become chairman if this proposal succeeds. In March, Thames Water agreed to delay a challenge against the regulator's decision about how much it can increase customer bills until it had explored the possibility of raising equity. This deferral will expire at the end of next month. Thames Water's spokesperson declined to comment. When it announced on Tuesday that KKR was leaving, Thames Water said that they would "progress the discussions on senior creditors' plans with Ofwat, and other stakeholders". $1 = 0.7389 pounds (Reporting and editing by Kate Holton; Paul Sandle)
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EIB pledges 15 billion Euros to protect EU water resources
The European Investment Bank announced on Wednesday that it would invest 15 billion euro ($17 billion) over the next 3 years in projects to reduce water pollution and prevent water waste. The European Union's lending arm's commitment is part of a strategy announced by the bloc on Wednesday to combat water shortages, droughts, and the pressures on water resources from pollution, farming, and sprawling urbanisation. Edouard Perard of the EIB's water division said that the bank will distribute the pledged investment between 2025-2027 mainly in the form loans with the goal of mobilizing another 25 billion euros from investors. The funding will be targeted at large infrastructure projects and those that restore or use natural eco-systems to manage water supplies as well as emerging water technologies. He said, "This is the place where water meets business." It's only by developing the technologies of the future that we will be able meet these water challenges. Data from the EU’s European Drought Observatory shows that around 40% of Europe is now under a drought alert, and 1.6% are in a more severe "alert", including parts of Greece. Poland, and Italy. Jessika Rosawall, EU Environment Commissioner said: "Water is different from any other resource. We face enormous stress in Europe and around the world." The Commission will propose water-saving standards and minimum standards for data centers to help improve their resilience to water stress. It has scaled back the plans in an earlier version of the strategy that were previously reported, to provide new EU subsidies for farmers who invest in water conservation, when the huge farm subsidy program is renewed. According to the EU, an additional 23 billion Euros per year is required in order to implement their existing water regulations that regulate pollutants and waste water treatment.
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Autoliv tries to avoid disruptions caused by China rare earths
Autoliv, the largest manufacturer of airbags in the world, and seatbelts has set up a taskforce to combat China's You can restrict yourself to certain areas. The CEO of the company said that the group is focused on exporting rare earth magnets and doesn't expect a production halt in the next few weeks. CLEPA, the European association of auto suppliers, warned on Wednesday that more shutdowns could be expected due to the shortage of rare Earths caused by China’s export restrictions. Autoliv's factories are still operating, according to CEO Mikael Bratta in an interview at the group strategy update. When asked about rare earth mineral, he replied: "We have all our hands on deck to tackle all of these challenges." Bratt continued, "I believe we are doing a great job in finding ways to fix it, whether through resourcing or material changes, and also with permits, because it is not impossible to obtain the export permit either." China, which controls 90% of the global processing capacity for rare earth magnets has announced that it will increase its production. Cooperate further Export controls are a major concern for many countries, as shortages threaten to close auto and semiconductor manufacturers in Europe and India. Many European companies are Looking to Invest Bratt stated that Autoliv does not anticipate making major investments in the U.S. in the near future, as tariffs continue their downward trend. Autoliv announced on Wednesday, in conjunction with its Capital Markets Day, that it would aim to keep capital expenditures below 5%. Bratt stated that it was difficult to make capex decisions in the current situation. "You have to know the future tariffs and how they will affect you for a long time," he said. You need stability in all of this. You can then make a decision. Marie Mannes is reporting, Louise Breusch Rasmussen is writing, Stine Jacobsen, Terje Solsvik, and Chizu Niyama are editing.
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Seven dead after stampede outside Bengaluru Cricket Stadium in India, TV channels report
Television channels reported that at least seven people died in a stampede in Bengaluru in India, as a celebration of Royal Challengers Bengaluru winning the Indian Premier League was taking place. Bengaluru defeated Punjab Kings in Tuesday's final match of the tournament. Television channels showed that thousands of people, many waving the red flag of the team, lined up the streets in front of the Chinnaswamy Stadium, in the center of the city, as the cricket team arrived in a bus at the venue. After the stampede, a policeman carried an injured spectator into an ambulance while people gathered round a second person lying on the ground. In India, large crowds can cause accidents such as stampedes and other incidents. A stampede killed at least 30 people during the Maha Kumbh Hindu Festival in January. Tens of millions of Hindus gathered on its auspicious day to dip into sacred waters. (Reporting and writing by Tanvi Mehta; editing by YPrajesh).
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Britain's sunny Spring brings bumper strawberries
Growers say that the strawberry season in Britain has started early this year, thanks to "near-perfect" spring conditions of warm days and cool nights, with high levels of sunshine. This year, the favourable weather conditions meant that sweeter strawberries with larger and better-shaped shapes arrived earlier in supermarkets and at lower prices. James Miller, commercial director at Maidstone-based WB Chambers Farms in southeast England, said that regular daytime temperatures of 20 degrees Celsius in May, dropping to 9 C over night, and high light levels, were key to an exceptional early season harvest. "It's really helped to develop the plants and produce the large and sweet berries we have at the moment," said the man. The warm, sunny weather this year has been a welcome addition to strawberry production. Tesco, Britain’s largest supermarket group, announced late last month that it had purchased extra strawberries from UK strawberry farmers and reduced the price of 400g punnets for shoppers from 2,50 pounds ($3.38) down to 1,50 pounds. This year, it is expected to sell 25% more strawberries than last. Miller stated that the conditions for fruit production this spring are very different from last year, when Britain had a colder and wetter start to its growing season. He said that all farmers understand the need to adapt to climate changes and to be ready for new circumstances. We must invest in technology. "We have to invest in the technology." Miller welcomed the news the government was resetting its trade relations with the European Union. This should make exporting easier. The sooner an agreement is reached, the better. He said, "If this was the summer, this would be great." $1 = 0.7389 pounds (Reporting and writing by James Davey; additional reporting by Liza Premiyak, editing by Alexandra Hudson).
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Ingenuity helps Zimbabwe to weather the drought and US aid cuts
The drought of last year affected harvests severely US Aid Cuts Deepen Challenge of Climate Change Zimbabwe looks for home-grown water solutions By Lungelo Ndhlovu The Mabale community in Zimbabwe is relying on rain harvesting this year to grow enough food. They are using canvas, chicken wire and cement for the extreme weather. Climate experts predict that extreme weather conditions will only get worse. Mattias Söderberg, Global Climate Lead at DanChurchAid (a Danish humanitarian organization), said: "Zimbabwe has been severely affected by climate changes, and science shows that it will only get worse." Zimbabwe experienced the worst drought of southern Africa in 40 years by 2024. In a country with 70% subsistence farmers, the water reserves and harvests dried up. Climate change has made it more likely that climate change will cause weather such as droughts and storms. The United Nations warned that Zimbabwe could face a "firestorm" of hunger if it did not receive aid. After President Donald Trump's inauguration in this year, the U.S. Agency for International Development was systematically weakened. U.S. funding helped support a number of projects in Zimbabwe, including those in agriculture, food security and health. A Rome-based spokeswoman said that the UN's Food and Agriculture Organization had received termination notices from more than 100 programs, with Africa being the most affected. Zimbabwe is still counting the costs of its recent drought and preparing for the next. Soderberg stated that without funding, efforts to increase resilience and adapt to climate change effects may never be realized. Layiza Mudima (49), a mother from Mapholisa Village in Mabale about 2 km (1.24miles) northeast of Mabale Park, told reporters that her community faces "a severe challenge" with water. The drought of last year dried up boreholes and drinking water holes in Hwange. This threatened wildlife in the park, and deprived people in Mabale from water. Even though the rainfall in December and February of this year was above normal, the effects of last year's drought still persist. Mudima explained that despite the rains this year, one of his boreholes had to be closed due to low water levels. She said that because there were too many people living in her village, and not enough boreholes to go around, they would walk five kilometers to another village which had a solar-powered borehole. In response to these water shortages, the people of Hwange began building rainwater tanks with the help of Soft Foot Alliance. This community-based trust is registered in Zimbabwe. Constance Ndaba (75), who lives in Masikili Village 2 said that the tank harvesting systems saves her from walking 2 kilometers to the next village. For a family with seven members, the rainwater tank can last us three months. It's been a while since I retrieved water from a well. SELF-SUFFICIENCY In order to collect rainwater, giant jars are made by moulding chicken wire and canvas around sand. The form is fixed with a thin layer of cement plaster, and then the interior is plastered. The jars can be placed close to the house walls in order to collect rainwater. The simplicity of their design makes them easy to maintain - an important benefit for remote communities. We use local river sand, chicken wire and plain wire. Four bags of cement are also used. The jar tank can hold up to five drums worth of water and last for up to three months. Msungwe SITHOLE, a facilitator of the Soft Foot Alliance said that the project was designed to help build resilience against droughts and to enable people to live sustainably on a landscape depleted. Chipo Mpofu Zuze, Manager of the Environmental Management Agency for the Matabeleland North Province, says that water scarcity is not only caused by irregular rains. MpofuZuze said that deforestation and crop-growing near streams, poor farming techniques, alien species invading wetland areas, and effluent released into local waters are also to blame. Simba Guzha is the regional project manager for Voluntary Service Overseas, Zimbabwe. He trains farmers on how to adapt to increasingly hot and arid conditions. VSO works with smallholders from the eastern provinces of the country to increase productivity and protect the environment, while helping them avoid any sudden drops in aid.
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The dollar is stable, but stocks are rising, and traders are focusing on US tariffs, data, and stock prices.
The dollar was little altered on Wednesday as the market's sentiment remained uncertain about U.S. president Donald Trump's plans for tariffs and his negotiations with China. Trump has set a deadline of Wednesday for trading partners to submit proposals for trade agreements in order to avoid the "Liberation Day Tariffs" from coming into effect within five weeks. The U.S. also increased its tariffs on aluminium and steel on Wednesday. These higher tariffs apply to all trading partners except for Britain, the only country that has reached a preliminary agreement. The dollar-denominated MSCI All-Country Index climbed to a new record high. This was largely due to the recent weakness of the U.S. dollar. However, trading remained muted while investors waited for the news regarding a phone call that could be made between President Trump and Chinese leader Xi Jinping. Trump's social media post before the opening of European markets hurt sentiment. Trump wrote in a Truth Social post that he liked President Xi, "but he's VERY TOUGH and EXTREMELY DIFFICULT TO DEAL WITH." The European Union trade negotiator reported that he and his U.S. counterpart had a "productive" discussion on Wednesday morning. At 1139 GMT the pan-European STOXX 600 rose 0.4%, while Germany's DAX grew 0.6%. Wall Street futures showed a modest gain, with Nasdaq and S&P 500 minis both up 0.2%. The dollar index was unchanged at 99.202, but the euro rose 0.1% to $1.1383. Amelie Derambure is a Senior Multi-Asset portfolio manager at Amundi, based in Paris. She was surprised by the relative calm on the markets regarding the threat of tariffs. She said, "To me, there is a very clear willingness on the part of the markets to believe that the Trump administration won't be able to stop U.S. economic growth at the end." Derambure stated that there may be some changes in the behaviour of traders as tariffs near their implementation. She said, "I believe we can expect a higher level of volatility in the days to come up until the end of the tariff pause." Investors have fled U.S. assets this year in search of safe-havens such as gold and other currencies. They expect that trade uncertainty will have a negative impact on the global economic climate. The traders are awaiting U.S. data to see how tariffs affect companies, before Friday's monthly payroll data. Derambure, from Amundi, said: "The market believes that the constant back and forth, the uncertainty hasn't had a major impact on the behaviour of firms at the moment." This can change relatively quickly if this assumption changes for any reason. It could be because the data is weaker or that some companies change their advice or are more concerned. The benchmark German Bund yield increased by 2 basis points to 2.528%. The European Central Bank begins its two-day meeting on Wednesday. After data showed that inflation fell below the ECB target of 2% in May, it is expected that the central bank will continue to ease monetary policy on Thursday. PMI data shows that the growth of euro zone businesses slowed in May. The oil price was stable as the supply pressure from wildfires in Canada offset concerns over output increases. The weaker dollar helped gold to rise 0.1% in the morning at $3,349.05.
Finland's Gasum to end Russian LNG imports in line with EU sanctions
Finland's Gasum, a crucial gas provider to the Nordic area, will stop buying and importing Russian melted gas ( LNG) in July in line with fresh European Union sanctions, the company stated on Tuesday.
Gasum complies with all sanctions enforced by the EU and will not acquire or import Russian LNG since 26 July, it stated in a declaration.
EU member countries on Monday embraced a 14th package of sanctions on Russia that struck the nation's gas exports for the very first time.
This includes a stipulation restricting the purchase or importation of Russian LNG through European Union terminals that are not connected to the EU gas network, included at the request of Sweden and Finland and enabling them to cancel some LNG agreements.
While other LNG sanctions under the EU's latest package do not work up until next year, the stipulation using to Finland and Sweden works from July 26.
The sanctions embraced by the EU do not enable Gasum to end its agreement with Gazprom Export, but constitute a. force majeure on the purchase or import of Russian LNG to. off-grid terminals, Gasum stated.
The company has a long-term LNG supply agreement with Gazprom. Export which was concluded before 2022 on a so-called. take-or-pay arrangement, obliging it spend for contracted gas. despite whether it uses it or not.
Without sanctions, Gasum had been doing not have legal grounds to. stop its purchases.
Currently now most of the LNG sourced by Gasum has. been originating from sources besides Russia and we will replace. the Russian volumes with supply from other sources, a. representative for Gasum said.
All of the terminals run by Gasum in Sweden and. Finland fell under the latest sanctions, the spokesperson included.
Gasum purchases LNG from the Kryogaz-Vysotsk plant controlled by. Russian company Novatek.
Gazprom and Novatek did not respond to requests for. immediate comment.
(source: Reuters)