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Investment of 3 billion Euros by Development Banks in Ocean Plastics Fight
A group of development bank plans to invest 3 billion euros ($3.4billion) by the end the decade to tackle plastic pollution in the ocean, increasing the scope and financial power of what is still the biggest effort in the world to fix this growing problem. According to the United Nations, if current trends continue, plastic waste entering water could triple from 11 million tons to 37 millions metric tons annually by 2040. The growth of microplastics is a cause for concern. They have contaminated the oceans and soil, and even the air. These plastics are then found in animals, plants, and humans. Stefanie Linenberg, project leader at the European Investment Bank, launched the second version of the Clean Oceans Initiative in Nice, France as the U.N. Conference kicked off. She said that the amount could increase as more partners join. Ambroise Fyolle, vice president of the EIB, stated that the original initiative included French, Germans, Spanish and Italians lenders, as well as the European Bank for Reconstruction and Development. The pledged investment totaled 4 billion euros between 2018 and 2025. This was ahead of the year-end goal, he said. In the first phase, there were projects focusing on improving the treatment of wastewater in Sri Lanka, managing solid waste in Togo, and protecting Benin from flooding. The project will continue to focus on the upstream sources of garbage, such as helping to develop new packaging or ensuring that more waste is recycled. Lindenberg stated, "We understand that we have a role to play." "To reduce or at least keep in the system the amount of virgin polymer that is required." She said that the bank could lower the risks of developing new products, packaging, and technologies by, for instance, providing grants, cheaper funding or investing into third-party fund, The programme will also work with other development banks, especially those in Asia and Latin America. These are the two regions that produce most ocean waste. She said that the World Bank and Inter-American Development Bank are also in talks with the Asian Development Bank. The Asian Development Bank has already entered the second phase, and will be expected to provide local knowledge and contacts. You can find out more about the countries by clicking here. Will convene In August, they will try to reach an agreement to reduce plastic pollution after the December discussions in Busan, South Korea, failed to produce a result. ($1 = 0.8754 euro) (Editing done by Kirsten Doovan)
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White House aide: US seeks a 'handshake with China' on rare Earths
Kevin Hassett, White House economist, said that the three U.S. top trade negotiators want to shake hands with China during London talks in order to seal an agreement reached between Presidents Donald Trump & Xi Jinping on rare earths. Hassett, Director of the National Economic Council told CNBC that the purpose of today's meeting was to ensure that everyone is serious and to get a handshake. Hassett said, "I anticipate a brief meeting with a strong, big handshake." Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, along with U.S. trade representative Jamieson Greer, were scheduled to meet their Chinese counterparts on Monday in London to try to diffuse the ongoing trade dispute that has escalated in recent weeks. This includes export controls of goods vital to global supply chains. Hassett stated that the Chinese export controls for rare earths were a major sticking point. He said that because China controls the majority of rare earth and magnet supplies in the world, its restrictions to send them to the U.S. may disrupt production, especially for American automakers who rely on these materials. Hassett responded to the question about Chinese opposition to U.S. restrictions on semiconductor exports: "Our expectation, after the handshake and immediately after the handshaking, is that any export controls by the U.S. would be eased and the rare Earths released in large quantities, so we could then go back to the smaller issues." (Reporting and editing by Susan Heavey, Toby Chopra, and Doina Chopra).
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Saudi Arabia's GDP grew by 3.4% in the first quarter, exceeding flash estimates
Saudi Arabia's economy grew more than anticipated in the first quarter 2025, according government data estimates. Lower oil prices had a less significant impact on the economy than originally forecast. The Saudi General Authority for Statistics released a flash estimate of 2.7% in May. This was a significant improvement over the initial estimates. Monica Malik is the chief economist of Abu Dhabi Commercial Bank. She said that "the upward revision" was due to both a smaller contraction in the oil sector each year and a stronger growth in private sector. Initial estimates showed a contraction of 1.4%. The non-oil sector grew by 4.9%, compared with estimates made last month that indicated a 4.2% rise. Increased oil production in the Kingdom may have blunted the impact of lower oil price. Riyadh faces an increasing budget deficit. The International Monetary Fund says that Riyadh requires oil prices above $90 per barrel for its books to be balanced. Prices of $60 per barrel were the norm in recent weeks. Saudi Arabia, the largest oil exporter in the world, lowered the price of its July crude oil for Asian buyers beginning of June after the Organization of the Petroleum Exporting Countries (OPEC+) increased output for a forth month. OPEC+ has agreed to a further big increase in output of 411,000 bpd, after increasing output by the same amounts in May and June. Saudi Arabia has embarked on a costly transformation program called Vision 2030, which aims to wean its economy off of oil dependence. It has also been investing billions in massive new development projects. The Financial Times reported that in May, Saudi Finance Minister Mohammed Al-Jadaan stated the kingdom would take stock of its priorities as a result of a decline in oil revenues. Malik said that he expects to see a reduction in government spending, to reduce the growing fiscal deficit. This will also likely have an impact on the non-oil sector's growth. Daniel Richards is a senior economist with Emirates NBD. He said the bank still believes that spending levels will continue to be high. He wrote that there are still enough projects in progress to support growth at least through this year and the next. Saudi Arabia has committed to hosting a number of large international events. Each event will require significant expenditure on construction and development. The 2029 Asian Winter Games will feature artificial snow, a freshwater lake created by man, and the World Cup in 2034, where 11 new stadiums and some renovated ones will be constructed. Saudi Arabia's fiscal deficit in 2025 is expected to be around 101 billion Riyals ($27 billion). Pesha Magd is reporting; Toby Chopra is editing.
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Grossi: Iran's obtaining IAEA documentation is bad and shows poor co-operation.
Rafael Grossi, the chief of the U.N. Nuclear Watchdog agency, said that Iran's purchase of secret documents from the watchdog is a "bad" step and goes against the spirit that should exist between Tehran and the agency. In a confidential report sent to its member states by the International Atomic Energy Agency on May 31, it said that "conclusive proof" had been provided by Iran of Iran's active collection and analysis of Agency documents. The report stated that this "raises grave concerns regarding Iran's collaboration spirit" and could undermine IAEA work in Iran. But Tehran, in a recent statement to IAEA member states, said the accusations in the report were "slanderous", and that they had been made without "presenting any substantiated evidence or document". This week, the 35-nation Board of Governors of the IAEA will hold a quarterly meeting. The United States will propose to the board a resolution that declares Iran in violation of its obligations to non-proliferate due to other failures detailed in the report. Grossi said at a press briefing that "here, unfortunately, this is a situation that dates back a few year ago... We could tell with absolute clarity that documents belonging to the agency had been in the Iranian authorities' hands, which was bad." "We do not believe this action is compatible with the spirit and purpose of cooperation." Grossi responded: "No. We have received documents from our member states and we also have our own assessments of documents, equipment, etc. (Reporting and editing by William Maclean, Francois Murphy)
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Argentex, a UK-based company, rejects Lavide’s investment proposal
Argentex announced on Monday that it had rejected a proposal by Lavide Holding NV, based in the Netherlands, to acquire a 50% stake of the British currency risk management company for 2.5 million pounds (3.39 million dollars) and a possible provision of a credit line up to 15 million pounds. The British company refused the proposal because it did not cover the entire share capital or provide sufficient funding compared with an agreement made with IFX Payments. According to LSEG, Lavide has a current market capitalisation worth 3 million euros. Argentex experienced a near-total collapse of value after it halted trading in April. It was one of the earliest casualties in a prolonged bout of turmoil in global financial markets caused by trade tensions. By 1134 GMT, shares of the company had risen 22.4% to 3 pence. Argentex accepts a Takeover offer IFX Payments, a cross-border payment provider, valued the company at approximately 3 billion pounds in late April. It also provided it with a secure bridge funding of around 6.5 million pounds.
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US and Chinese officials will meet in London to discuss important trade issues
The top U.S. officials and Chinese officials are due to meet on Monday in London for talks to defuse the high-stakes dispute over trade that has grown in recent weeks to include more than just tit-fortat tariffs, but also export controls of goods vital to global supply chains. The two superpowers would meet in the elegant Lancaster House, to try and get back on track after a preliminary deal struck last month at Geneva had temporarily cooled the tensions between Washington and Beijing. The talks were scheduled to begin around 1130 GMT Monday. Both economies are in a critical period, as investors seek relief from the flurry of tariff orders issued by U.S. president Donald Trump since his return to White House. A UK government spokesperson announced on Sunday that the next round of U.S.-China trade talks will take place in the UK on January 1. "We are a country that has always championed free trade, and we have been clear that a war in trade is not in anyone's interest. So, we welcome these discussions." A U.S. delegation led by Treasury Sec. Scott Bessent will gather with Commerce Sec. Howard Lutnick, U.S. trade representative Jamieson Greer and a Chinese delegation headed by Vice Premier He Lifeng. In Geneva, the two sides agreed on reducing steep import taxes that each side had imposed on the other's products. This had resulted in a trade ban between the No. In recent weeks, U.S. officials have accused China of not keeping its promises, especially in relation to rare earths shipments. Lutnick's inclusion, whose agency is responsible for export controls in the U.S.A., shows how important rare earths have become. He didn't attend the Geneva talks where the countries reached a 90-day agreement to reduce some of the triple digit tariffs that they placed on eachother. CONCLUSION POSITIVE The second round of talks comes just four days after Trump spoke with Chinese leader Xi Jinping by phone. It was their first direct contact since Trump's inauguration on January 20, 2017. During the call that lasted more than an hour, Xi warned Trump against threatening actions on Taiwan and urged him to drop trade measures which were causing global economic turmoil. Trump posted on Twitter that the trade-focused talks had "a very successful conclusion," which set the stage for the meeting on Monday in London. Next day, Trump announced that Xi agreed to resume shipments of rare earth minerals and magnets to the U.S. China's April decision to halt exports of magnets and minerals was a major blow to the supply chains of automakers, aerospace companies, semiconductor firms and military contractors. Karoline leavitt, White House spokesperson, told Fox News' "Sunday Morning Futures," on Sunday: "We want China to and the United States continue moving forward" with the Geneva agreement. The administration has been closely monitoring China's compliance to the agreement, and we are hopeful that this will lead to more comprehensive trade negotiations. The preliminary agreement in Geneva has sparked an international relief rally on stock markets. U.S. indices, which were in or near bear-market levels, have recovered the majority of their losses. S&P 500 Index is only 2% off its mid-February record high. At its lowest point, the index was down 18% in early April after Trump announced his "Liberation Day", sweeping tariffs on all goods around the world. The last third of the rally was triggered by the U.S./China truce in Geneva. This temporary agreement did not address the broader issues that are straining the bilateral relationship. These include the illicit fentanyl traffic, the democratically-governed Taiwan, and U.S. complaints against China's export-driven, state-dominated economic model. The UK government will host the discussions on Monday, but it will not participate in them. Instead, the Chinese delegation will hold separate talks with the UK later this week. As investors awaited news, the dollar fell against all major currencies. Oil prices were also little changed. Reporting by Trevor Hunnicutt, Nathan Layne, Brenda Goh, and Kate Holton, in Washington; Writing and editing by Dan Burns, Chris Reese, and Toby Chopra.
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VinFast's Q1 losses grow on higher spending and increased deliveries
VinFast, a Vietnamese electric vehicle manufacturer, reported a net loss for the sixth consecutive quarter on Monday as it continues to increase spending in order to boost sales. VinFast has reported a loss of $712.4 millions for the first three months. This is less than the $1.3billion loss from the previous quarter, but 15% higher than one year ago. According to LSEG, the average analyst forecast was a loss of $616.3 millions. The revenue jumped by 150%, to $656.50 million between January and March. This compares with the analysts' estimated average of $520.50 million. The quarter saw a nearly 300% increase in deliveries, reaching 36,330 cars, mostly due to sales in Vietnam, the biggest market. VinFast, backed by Vietnam's biggest conglomerate Vingroup, continues to face challenges because of weak consumer demand, stiff competitors, and the 25% tariff that the U.S. imposed on imported cars. VinFast had previously identified the U.S. market as a major growth market. VinFast's gross margin was minus 35.2% for the first quarter of this year, compared to minus 58.7% one year ago. VinFast Chairman Thuy Le said: "Despite Q1 being typically our slowest quarterly, deliveries in the first quarter 2025 were higher than our total deliveries during the first half of the previous year. This is an encouraging start for 2025 despite the global uncertainty." The company is intensifying its promotional efforts in the United States, switching to a dealership-based model instead of its expensive showrooms. It has also shifted its focus towards Asia with a new assembly plant set to open in India in July. The company said that the costs of sales had more than doubled in the first three months compared to the previous year. VinFast has been losing money every quarter since its IPO in August 2023. Its founder and CEO Pham Nhat Vuong, and Vingroup have provided financial support of around $2 billion as of May. Third Bridge, a research firm, noted in a report on pre-earnings that "while its VF3 compact SUV is driving volume sales, the company still loses money on each car it sells." It said that "the bill of materials" was estimated to be higher than Tesla's and BYD's, in part because VinFast lacked scale and paid a premium to its suppliers who were wary about the company. VinFast's shares rose by 14.04% before the market opened. In the third quarter, the company announced that it would launch its next-generation platform as well as an electrical architecture for the Limo Green model. The existing EVs will be supported by this platform next year. Reporting by Phuong nguyen from Hanoi, and Akash Sriram from Bengaluru. Shinjini Ganuli and Mark Potter edited the article.
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PwC: Argentina to experience a boom in M&A under Milei with energy as the focus
Argentina's mergers and acquisitions market could grow significantly in the coming years if President Javier Milei's economic reforms continue, Juan Tripier, director of M&A and corporate finance at PricewaterhouseCoopers (PwC) Argentina, told . Investors are showing renewed interest in Argentina after Milei's actions, which include a sharp reduction in inflation and government spending, a restored surplus fiscal, and loosened foreign exchange controls. "Two or three years ago, you would have contacted a multinational company, an investor from abroad, and Argentina was considered a bad name. This has changed since Milei was elected president," Tripier stated in an interview in Buenos Aires. He added, "There is a lot excitement." "This excitement is shared by both international players or international investors and local players." Tripier stated that Argentina can surpass previous M&A peak years in three to five year, where there were 120-150 deals per annum, with diverse activity across sectors like agribusiness and food. In the past, multinationals in Argentina have mainly invested in energy, mining and technology. However, foreign investors will now be expected to invest more into other industries. PwC data shows that in 2024 Argentina will have recorded 99 M&A transactions, the most since 2019. Transaction values are expected to reach $8 billion, which is the highest amount since 2017. Investors remain cautious despite the recent surge in interest due to the lingering restrictions on dividend repatriation and high country risks. "Now that you are talking to investors overseas, they look at opportunities. They would have said: Argentina is not in the picture. They are now analyzing the investment and saying: "I want to wait until the economy consolidates before I make a decision," Tripier said. Vaca Muerta is the second largest unconventional gas reserve in the world and the fourth largest oil reserve. It's located in Neuquen province, one of Argentina's most popular attractions. "With the increase in investments not only in upstream development but also in infrastructure--pipelines, processing plants, and liquefied natural gas projects--we expect realignments aimed at diversifying producers' exposure, with some buying and others selling," said energy lawyer Jose Martinez de Hoz of Martinez de Hoz & Rueda. Daniel Dreizzen (former Secretary of Energy Planning, director at Aleph Energy) projects that hydrocarbon exploration investment will reach $11.553 billion by 2024. There's been lots of M&A activity. Dreizzen explained that Aleph is talking with investors who are interested in Argentina. They're cautious, given our past track record, but they're also looking for opportunities. (Reporting and editing by Eliana Razewski)
Saudi chemical group SABIC reports worse-than-expected quarterly loss
Saudi Arabian chemical giant SABIC announced worse-than-expected fourth quarter results on Wednesday, against a backdrop of margin pressures in the sector.
Chemicals industry is struggling with low demand and high input cost, which has led to lower prices and squeezed profit margins.
SABIC reported a net loss for the three-month period ending December 31 of 1,89 billion riyals (US$504 million), compared to a loss in the same period last year of 1,73 billion riyals.
LSEG data indicates that analysts had predicted a profit of a bit more than 1 billion riyals.
Salah Al-Hareky is the executive vice president of corporate finance. He told reporters that "fixed costs are usually higher in winter" and also during the fourth quarter.
SABIC, which is 70% owned by Saudi Aramco and has a market capitalization of $70 billion, saw a net profit of 1,54 billion riyals for 2024, up from a loss of $2.77 billion in 2023.
Chief Executive Abdulrahman Al-Fageeh stated that monetary easing helped to support the petrochemicals sector, but "overcapacity remains a challenge for polymers in particular".
"Ethylene capacity growth is slower than demand growth, resulting in sustained pressure on capacity utilization rates." SABIC's EBITDA margin remained stable despite these market conditions. This shows its resilience in difficult market conditions," said he in the earnings release.
SABIC's capital investment is expected to be between $3.5 and $4 billion in this year. The guidance for the next five years was $4 to $5 billion. Reporting by Pehsa Magd in Riyadh, and Yousef Saba in Dubai. Editing by Jacqueline Wong & David Goodman
(source: Reuters)