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Gold drops 1% after strong US payrolls data dampens rate-cut hopes
Gold fell 1% on Thursday as stronger-than-expected U.S. payroll data cemented expectations that the Federal Reserve is unlikely to cut interest rates as early as previously anticipated, denting the metal's appeal. As of 1303 GMT spot gold was down 1% at $3,325.48 an ounce, while U.S. futures gold were down 0.7% at $3,336.00. Bureau of Labor Statistics of the Labor Department reported that non-farm payrolls grew by 147,000 last month. Economists surveyed by had predicted payrolls to rise 110,000. A stronger dollar makes bullion more expensive for overseas buyers. The better-than-expected jobs numbers mean we are less likely to see the Fed cut rates sooner than anticipated. The dollar has strengthened, which puts pressure on the gold market, said David Meger. The key is that any idea or possibility of an interest rate cut in July is off the table. Investors now expect a Federal Reserve rate cut of 53 basis points by the end the year starting in October. This is down from the 66 basis point estimate prior to the report. Gold that does not yield tends to do well in an environment of low interest rates. A trade agreement was announced between the United States of America and Vietnam on Wednesday, ahead of the deadline for U.S. Tariffs to go into effect on July 9. Republicans in the U.S. House of Representatives are advancing Trump's massive spending and tax-cut bill that could add up to $3.4 trillion dollars to the national debt to a final vote. Carsten Menke is an analyst with Julius Baer. He said that as the US debt continues to rise, investors may become more worried about the US dollar. This should help gold on a longer-term basis. Silver spot fell 0.2%, to $36.51, platinum dropped 2.9%, to $1376.80, and palladium lost 2.3%, to $1128.78. (Reporting by Anushree Mukherjee in Bengaluru; editing by Philippa Fletcher)
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Volvo Cars has delayed the start of production at its new Slovak factory until early 2027
Volvo Cars, according to a spokesperson on Thursday, has delayed the large-scale production of its factory in Slovakia from 2026 until early 2027 to optimize the Swedish automaker’s product launch schedule. The Gothenburg-based firm, owned by China’s Geely Holding, hasn't made it public which model will be manufactured at the Kosice plant, except to say that it will be next-generation Volvo. The spokesperson declined to say when the decision was made, but said that it had not been taken recently. Polestar, which is also owned by Geely and will begin production of its new Polestar 7 SUV in Kosice, Poland, starting 2028. The factory is expected to produce 250,000 vehicles annually. Hakan Samuelsson, the new CEO of Volvo Cars in April, said that the automaker would be reviewing the cars it planned to build at the factory and preferred to build cars for Geely as well. Samuelsson, an analyst in April, said: "We have to take a closer look at the possibilities of bringing in other Geely brand there." Shared plant "would be really good for us, because it's an expense that must be carried by the production volume of the factory." Samuelsson, now back at the helm of the Swedish automaker has implemented a number big changes, including the elimination of 3,000 white collar jobs, the launch of a cost cutting programme, and the slowing down investment. Marie Mannes is the reporter. Nick Carey is the writer. (Editing by Mark Potter and Susan Fenton)
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Ambani's Reliance spins off India consumer products business into a new unit
Reliance Industries, owned by Indian billionaire MukeshAmbani, said it would spin off its consumer products unit to create a new company to attract additional investors to the business. Reliance has a consumer business that includes brands like Campa Cola which competes against Coca-Cola and Pepsi. There are also dozens of snacks and confectionery products, such as Mondelez Cadbury chocolates, who fight for shelf space. According to a June 25 order, which was reported for the first time by Indian media, India's National Company Law Tribunal approved the internal restructuring, under which Reliance would transfer its consumer business, from its retail arm, into a subsidiary directly, New Reliance Consumer Products Ltd. According to the order, Reliance stated in its application for approval before the tribunal that "this is a very large business requiring special attention and expertise, as well as different skill sets compared to retail businesses." This business requires large capital expenditures on a continuous basis, and it can attract different investors." Reliance Industries holds a stake of 83.56% in the entity. Reliance Retail has been planning its own IPO. Reliance Retail announced on Thursday a strategic investment in FACEGYM (a facial fitness company and skincare firm based in the UK), without disclosing a specific investment amount. (Reporting and editing by Aditya K. Kalra, Sharon Singleton and Dhwani Paandya)
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French nuclear regulator allows EDF 1300MW reactors to have their lifespan extended
The French nuclear regulator ASNR announced on Thursday that EDF's 1300MW EDF reactors can operate for longer than their 40-year original lifespan. It said that this would require upgrading to raise the safety standards in order to match those of European Pressurised Reactors. During its 40-year inspection, the regulator will set specific safety requirements for every reactor. EDF must also submit annual reports describing its progress towards meeting these requirements. The decision relates to 20 reactors of the 56-strong country's fleet that will reach their current lifespan approved between now and 2020. The regulator approved the extension of EDF's smaller 900MW nuclear reactors. The French President Emmanuel Macron made the expansion of the country's nucleo-production capability a major project. This included extending the lifespans of existing nuclear sites as well as building at least six reactors over the next decades. EDF has been struggling with project delays, overruns in budgets for new plants, and reactor defects. The state spent around 10 billion euro to nationalise the EDF, which was heavily indebted. The CEO Bernard Fontana was appointed earlier this year and has been given the task of accelerating nuclear expansion. He is now looking for ways to raise money to fund upgrades and new construction, and may even consider asset sales.
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JSW Poland renews bid for $444m tax refund amid liquidity crisis
JSW, a state-controlled Polish coal miner, renewed its request on Thursday for a refund of 1.6 billion Zlotys ($443.6 Million) on the "solidarity tax", which is a windfall profit tax. The company faces increasing losses and a cash crunch. JSW claims that the retroactive income tax, which was paid in 2023 and 20,24, is illegal and leads to double taxation. It claims that it did not make windfall profits due to high energy prices but instead faced significant electricity expenses. The company sought a refund from the Ministry of Climate and Environment in April. However, the Ministry declined to take action in June, saying it did not have the authority to determine the constitutionality of the tax. JSW shares are trading 8.7% higher as of 1115 GMT. If the gains continue, they will be on course for their largest daily gain since January 2024. Jakub Szkopek, an analyst at Erste Group, said that JSW's financial situation is still challenging despite its efforts to improve liquidity via the refund. Szkopek said that while the (share) response is positive and speculative, the current situation for the company is not ideal. Low coking coal prices, and the strong Polish zloty versus the U.S. Dollar are still a problem. JSW is Europe's biggest producer of coking, a raw material essential to steel production and on the EU's critical list. $1 = 3.6069 Polish zlotys (Reporting and editing by Milla Nissi-Prussak).
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International carbon credits: Do they combat climate change?
The European Commission proposed a climate goal for 2040, which allows countries to use carbon credits purchased from developing nations in order to reach the EU target for the first ever. What does that mean? And why did the EU's move on Wednesday cause some criticism among scientists and campaigners? What are carbon credits? Carbon credits or offsets are projects that fund projects abroad to reduce CO2 emissions in lieu of reducing your own greenhouse gas emission. For example, converting petrol buses in a city to electric or restoring forests in Brazil are examples. The buyer can use the "credits" to reach its climate goals, while the seller receives funding for their green project. The system, according to its supporters, provides much-needed funds for developing countries' efforts to reduce CO2 emissions and allows them to work together with other countries in order cut emissions globally. The reputation of CO2 credit has been damaged by a series of scandals where projects that generated credits failed to provide the benefits claimed for climate change. Why is the EU buying them? Carbon credits purchased from other countries could cover up to three percentage points of the EU 2040 target, which is to reduce net emissions by 90 percent from 1990 levels. In order to achieve the EU's climate goals, countries must reduce their emissions completely at home. Last year, the EU's executive commission said it hoped that the EU would agree on a 90 percent reduction in emissions by 2040. Carbon credits were not mentioned. Since then, the geopolitical turmoil and economic struggles of European industries has sparked political backlash. Governments from Germany to Poland have demanded a softer goal. The Commission responded by saying it would introduce flexibility and chose carbon credits to achieve the 90% reduction in emissions while reducing domestic steps required to get there. The EU countries, the European Parliament and the European Commission must all agree on the final goal. What are the risks? Carbon credit project developers and countries like Germany welcomed the EU plan as it would boost climate finance. Environmental campaigners warned that the EU is ignoring its domestic efforts to reduce CO2 and warned against relying solely on low-value, cheap credits. Climate science advisors in the EU also oppose buying credits under 2040 targets, as they say that this would divert funds from local clean industries. After a glut of cheap credits that had weak environmental benefits led to a crash in carbon prices, the EU banned international credit from its carbon market. In an effort to reduce the risk, the Commission announced that it would purchase credits in accordance with the global market and trading rules for carbon credits being developed by the U.N. They include quality standards that aim to avoid the problems unregulated credit trading faced in recent times. Next year, Brussels will also propose specific standards on the quality of the carbon credits that the EU purchases. How much will it cost? The EU does not yet know. Carbon credits can range from a few dollars for a tonne CO2 to over $100 depending on the project. According to EU emission records, the bloc would have to purchase at least 140 millions tonnes of CO2 to meet 3% of its 2040 goal. This is roughly equal to the Netherlands total emissions for last year. A senior official of the Commission said that the bloc is determined to not hoard cheap junk credit. "I don’t think it would add any value." "The credits that we see on the voluntary carbon markets today are extremely cheap and this probably reflects an absence of high environmental integrity," said the senior official. (Reporting and editing by PhilippaFletcher; Additional reporting by Virginia Furness)
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Copper prices fall on profit-taking before US jobs data
Copper prices fell on Thursday, as traders and funds profited from long positions in anticipation of the U.S. jobs data which could influence the direction of interest rates and dollar. By 1032 GMT the benchmark copper price on London Metal Exchange had fallen by 0.2% to $9,994 per metric tonne, after reaching a high of $10 020.50 for three months on Wednesday. The volume of trading was low ahead of the U.S. monthly employment report for June. The data is due on Thursday and should show a slight increase in unemployment. Weak growth numbers could cause concern about U.S. economic growth, and allow the Federal Reserve Bank to reduce interest rates. This would have a negative impact on the dollar. The industrial metals price has been boosted this year by a weakening dollar, which makes metals priced in dollars cheaper for buyers using other currencies. A U.S. investigation on potential tariffs for imports of metals used in power and construction could also have a strong impact on the price of copper. This could lead to shortages, and increase prices on COMEX. COMEX copper prices are about $1300 per ton higher than LME, which encourages producers and traders to divert their metal from other markets to the U.S. Tom Price, Panmure Liberum analyst, said: "While U.S. imports of copper have not been subject to a tariff yet... the market has still priced in this risk." A large amount of metal exported to the United States came from warehouses registered with the LME. Stocks of 0#MCUSTXLOC> on the LME have fallen by 65% since mid-February's 2025 peak. At 34%, cancelled warrants or metal that is destined to leave LME's warehouses indicate another 31,900 tonnes are waiting to ship out. Recent data indicates that the premium or backwardation is increasing. Cash copper contracts for three months forward are starting to bring metal back to LME. Copper stocks at the LME in Gwangyang, South Korea, have increased by 2,250 tonnes this week. In Kaohsiung in Taiwan, the stocks are up by 1.250 tons. Other metals saw aluminium slip 0.4% to $2.609 per ton. Zinc eased 0.3% at $2.749; lead rose 0.4%, to $2.068. Tin retreated by 0.2%, to $33,655 while nickel gained 0.7%, to $15,405.
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Human hair is a water-saving device in Chile, a country that has been hit by drought.
The small mats of hair at the base of the plants help to lock in moisture in orchards in Chile, which have suffered from drought for many years. According to the Matter of Trust Chile Foundation, who makes the mats, the hair is turned into sheets or discs of compostable mulch through mechanical weaving. This reduces direct evaporation of up to 71%, and can save as much as 48% of irrigation. "Hair is interesting. "Hair is very interesting. Maria Salazar, a farmer in Taltal in the arid Antofagasta Region of Chile, said that the hair had helped her get optimum crop yields from the lemon trees. Taltal is located about 900 km (560 miles north) of Santiago. Salazar stated that the hair mats were a great benefit for our system, and they also helped to reduce water stress. By providing shade, the hair mats maintain a high level of humidity. They also prevent the sun rays from evaporating our little water. In 2020, the foundation was established to encourage conservation and regeneration by creatively using waste. The hair comes from 350 salons in Chile and 10 pet groomers. About 2% of hair used for the mats is from pets. The foundation also produces a liquid fertiliser made from recycled hair, and an absorbent based on hair that can be used to remove contaminants such as metals, oils and other pollutants from water. (Reporting and additional reporting by Fabian Andres Cambero, Editing by Alexander Villegas & Rosalba OBrien)
Asia's sustainable aviation fuel tasks and agreements
Singapore prepares to need all flights departing the country to utilize sustainable air travel fuel (SAF) starting in 2026, its transport minister stated on Monday, as the citystate signs up with the international air travel market's. efforts to switch to greener fuel.
SAF, or alternative fuel made from renewable sources that. are utilized to power aircraft, is essential for the air travel sector. to reach its objective of net zero carbon emissions by 2050, but its. adoption remains in a nascent stage.
Following is a take a look at other SAF tasks and arrangements in. the Asia-Pacific area.
MALAYSIA
Malaysia has actually established an SAF blending mandate starting. with 1%, according to the National Energy Transition Roadmap. released by the federal government in 2023. It is targetting a 47% SAF. mixing mandate by 2050.
Malaysian state oil company Petronas and Japan's. second-biggest oil refiner, Idemitsu Kosan Co, signed a
initial arrangement
to team up on advancement and distribution of SAF in. October 2023.
Petronas and Malaysia's palm oil board have also signed an
contract
to study using cooking oil and palm oil waste as SAF. in August 2023.
Malaysian Aviation Group (MAG) has signed an SAF offtake. agreement with Petronas Dagangan, as part of efforts. to develop the green fuel on a business scale in Malaysia in. May 2023.
INDIA
India aims to have 1% SAF in airplane turbine fuel
by 2027
, doubling to 2% in 2028, the federal government stated in November. The SAF targets will at first use to global flights.
Indian Oil Corp will set up an 80,000-metric-ton. annually
SAF plant
with LanzaJet in Haryana, the refiner's chairman stated last. year. The business has a tie-up with LanzaTech for converting. waste gas to ethanol and into jet fuel.
SINGAPORE
Singapore announced on Feb. 19 it would go for a 1% SAF. target beginning in 2026 and prepares to raise it to 3-5% by 2030,. based on global developments and the wider schedule and. adoption of SAF.
The Civil Aviation Authority of Singapore (CAAS) plans to. introduce a SAF levy for the purchase of the fuel to be set at a. repaired quantum, based upon the SAF target and predicted SAF rate. at that time.
Singapore Airlines, The Civil Authority of Singapore, and. Genzero completed a
20-month SAF pilot
in November, and found that although Singapore is. operationally all set to provide SAF, more is required to support its. adoption.
Keppel Corporation Limited and AM Green have
signed
a memorandum of understanding in December to check out. chances to produce biogenic carbon-based sustainable. fuels, consisting of SAF.
Singapore Airlines started an one-year SAF pilot programme in. July 2022, working with ExxonMobil and Neste. The companies mixed 1,000 tonnes of cool SAF with jet fuel and. supplied the oil to Singapore Airlines and Scoot flights at. Changi Airport. Finnish refiner Neste operates the city state's only. SAF plant.
CHINA
There is no set SAF required in China since February 2024,. Its civil air travel administration said in its 2022. roadmap that carbon emissions in the sector will peak by 2035.
China's National Energy Administration revealed in. November 2023 that it would launch pilot projects to stimulate. domestic production and usage of
biofuels
, consisting of SAF and biodiesel. It did not offer details on. funding and timing.
In December 2023, China's State Power Financial investment. Corp announced a
plan
to produce 400,000 heaps each year of SAF in northern. Heilongjiang province. The plant will start as a pilot project. of 10,000 lots per year, the company stated. It is slated to. produce its first batch of fuel in late 2025 and will broaden to. 400,000 by 2030, according to an executive familiar with the. strategies.
In April 2023, Airplane and the China National. Air Travel Fuel Group (CNAF) signed a memorandum of understanding. to increase production and usage of SAF. U.S. industrial. conglomerate Honeywell has signed contracts to collectively. produce SAF with northern China's Tianjian Free Trade Zone in. 2023 and with southern Guangdong-based Oriental Energy Business. Ltd. in 2022, according to Honeywell and state-run. CGTN. The Guangdong facility will produce 1 million loads per. year of SAF, Honeywell stated, without discussing a timeline.
Hong Kong-based
Cathay Pacific Airways
set a target in March 2023 to use SAF for 10% of. its fuel by 2030. In October 2022, an A320neo Plane airplane left from. Tianjin and landed in Xian using a 5% SAF mix, with SAF. produced locally by Sinopec subsidiary Zhenhai Refining &&. Chemical Co (Zhenhai Refining), China Daily reported. In July. 2023, an Air China flight from Hangzhou to Beijing. significant China's very first use of SAF in a commercial flight, using a. 10% SAF blend, according to CGTN.
JAPAN
Japan is mandating that 10% of air travel fuel for. international flights utilizing Japanese airports be sustainable. starting in 2030, the Ministry of Economy, Trade, and Industry. said in May 2023.
Nippon Paper Industries Corp, Sumitomo Corp. and Green Earth Institute Corp agreed in. February 2023 to
jointly research study
bioethanol production made from woody biomass. The task,. Aims to produce bioethanol from Nippon Paper's if it prospers. mills in the 2027 fiscal year to be used as feedstock for SAF. production.
Fuji Oil Co Ltd started
preparation production
of bio-SAF at Sodegaura Refinery with Itochu Corp. in May 2023.
Eneos Holdings Inc agreed to study production of up. to 500 million litres (3.1 million barrels) of SAF and renewable. diesel annually collectively with Australian refiner Ampol. Japan's leading airlines, All Nippon Airways (ANA) and. Japan Airlines (JAL), have broadened their SAF purchases. by adding products from trading home Itochu Corp and U.S. producer Raven SR . Other business exploring SAF production in Japan consist of. Mitsubishi Corp, Boeing, and TotalEnergies SE .
SAF is set to replace 10%, or 1.34 million kilolitres, of. fuel utilized by Japanese airline business by 2030, according to. the Japan Transport and Tourism Research Institute (JTTRI).
PHILIPPINES
There is no set SAF mandate in the Philippines as of. February 2024.
Cebu Pacific flew an airplane from Singapore to Manila. powered by a 35% SAF mix from Neste in September 2022.
The airline signed a long-lasting tactical partnership with. Shell Eastern Petroleum to make SAF more commonly offered for. its fleet via the supply and purchase of SAF in Asia Pacific and. the Middle East, with an initial volume of a minimum of 25,000. metric loads per year.
AUSTRALIA
There is no set SAF required in Australia as of February. 2024. Qantas Group introduced the Sustainable Aviation Fuel. Union (SAF Union) in cooperation with Australia Post,. KPMG Australia, Macquarie Group, the local arm of Boston. Consulting Group and Woodside Energy on Nov. 11, 2022. Qantas and Jet SE will jointly invest A$ 2 million. ($ 1.34 million) in a biofuel refinery being set up in. Australia's Queensland state that would transform agricultural. spin-offs into SAF.
The refinery is anticipated to produce approximately 100 million litres. of SAF a year, with construction due to begin in 2024. This is the first investment from a $200 million fund Qantas and. Jet set up last June to begin the SAF industry in. Australia.
The airline company expects about 10% of its fuel to come from SAF. by 2030, and 60% by 2050.
Last November, Climate Leaders Union members Ampol. , Brisbane Airport, Deloitte, Qantas and Viva Energy. proposed the facility of an East Coast SAF. passage in their Scope 3 Roadmap.
Australia's very first Jet Zero-style council, designed on the. eponymous government-industry partnership for SAF production in. Britain, is anticipated to hold its very first conference this monetary. year ending in June 2023, stated a representative from the. Department of Infrastructure, Transport, Regional Advancement,. Communications and the Arts.
The council will match the Air travel White Paper, which. is expected to finish up early 2024.
NEW ZEALAND
There is no set SAF required in New Zealand as of February. 2024.
Channel Infrastructure NZ Ltd's scoping study for. green hydrogen and synthetic sustainable air travel fuel. production at Marsden Point is relocating to the
pre-feasibility
stage, supported by the federal government's Energy Performance and. Preservation Authority.
Air New Zealand and the New Zealand government. strategy to invest more than 2 million New Zealand Dollars
(source: Reuters)