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Retail sales in the US rose sharply in August
Retail sales in the U.S. rebounded much more than expected during August, as households stocked up on motor vehicles and restocked for the new school term. This reinforced the economy's resilience at a time when consumers are becoming more concerned about high inflation. The Commerce Department's Census Bureau reported on Wednesday that retail sales rose 1.2% in August after a 0.5% decline in July. This was the first drop in nine months. The economists polled predicted that retail sales (which are mainly?goods, and are not adjusted to inflation) would rebound by 0.8% following a previously reported drop of?0.6% in July. Estimates varied from a 0.2% increase to as high as 1.1%. The increase in receipts at service stations was partly due to higher gasoline prices. The U.S. war against Iran and the high oil prices have caused supply chain stress, which has led to households continuing to spend. The consumer has become more selective, and is looking for lower priced goods. This month, consumer sentiment declined. Recent stock market gains and steady wage growth are supporting spending. Savings is also down and households are tapping into their nest egg. The strong retail sales combined with rising price pressures, and a labor market that has regained its equilibrium after stumbling through most of the summer, have further strengthened?financial markets' expectations that Federal Reserve will increase interest rates on Wednesday. Retail sales, excluding automobiles and gasoline, building materials, and food services, surged by 1.4% in August after a 0.4% drop that was not revised. The economists expected that core retail sales, the ones which most closely correspond to consumer spending in terms of GDP, would rise by 0.4%. Estimates of economic growth for the third-quarter currently exceed 2.0% annualized. Last quarter, the economy grew by 1.5%.
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Sources: Drone attacks have put Russian refineries in Syzran and Saratov on hold.
Three industry sources confirmed that the Rosneft owned oil refineries in the Volga River?cities of Syzran & Saratov have ceased?processing? following Ukrainian drone attacks earlier this month. The plant in Syzran was shut down on Tuesday. Saratov's operations were suspended last Friday. This week, despite the announcement made by U.S. president Donald Trump that both countries had agreed to cease their attacks on energy infrastructures of each other, Russia and Ukraine have continued to attack each other. The shutdown of refineries in Russia will probably worsen the domestic fuel shortages, which were already a problem due to restrictions on gasoline, diesel and jet fuel exports. Rosneft has not responded to our request for comment. SYZRAN'S MAIN UNIT DAMAGED Sources claim that a drone attack damaged several facilities at the Syzran refinery, including the CDU-6 main crude distillation unit, which has a daily capacity of 17,100?metric tons, or 71% of its processing capacity. The refinery's repairs could take a minimum of a month. When the strike on September 15 occurred, the refinery's CDU-5, which has a daily capacity of 7,100 tonnes, or 29%, was being repaired following an earlier drone attack in July. SARATOV ATTACKED AGAIN Saratov's refinery has stopped processing crude oil since September 11, following another drone strike. Sources said that the plant had also suspended operations on September 8, due to fires and equipment damage caused by a previous drone strike. The plant was planning to resume processing between September 10 and 11th. Saratov's refinery was also closed for several weeks following a drone attack on August 2. The?Syzran refining plant, located in Russia’s Samara region has a capacity to process crude oil of 150,000 barrels a day or 8.5 million tonnes per year. Saratov refinery's capacity is 140,000 barrels per day or 7.0 million tons of metric tonnage. Separate industry sources claim that the Syzran Refinery will process 4.3 million tonnes of crude oil in 2024, and produce?0.8 millions tons of gasoline and 1.5 million?tons diesel, and 0.7million tons?of fuel?oil. According to industry sources, Saratov refinery will process 5.8 million tonnes of crude oil in 2024 and produce 1.2 million metric tons of gasoline, as well as 1.9 million metric tons of diesel fuel, and 1.0 metric tons of fuel.
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Google signs largest carbon-removal agreement yet and aims to scale up new model
Google's biggest carbon-removal agreement yet involves backing a Brazilian project run by developer Terradot. The project aims to?cut methane emission from rice farming?and.capture carbon dioxide in the atmosphere. Executives told. It is the largest rock-weathering project in history, covering more than 200,000 acres of land in the southern state Rio Grande do Sul. The goal is to speed up a natural process by which certain rocks absorb CO2 out of the air. Google's head for carbon removal Randy Spock said that the initiative is the first of its kind to combine methane removal and carbon removal. Methane is a "super-pollutant" greenhouse gas, which warms the air?more rapidly than carbon dioxide. It helps slow down global warming. However, carbon dioxide removal will still be needed to remove centuries' worth of accumulated emissions. "We need to do both." Spock stated that we do not have the luxury to focus all our resources solely on scaling up long-term 'carbon removal' or on tackling short-lived superpollutants. The project will generate one million metric tonnes of credits for methane abatement by 2030, and one million tons of credits for carbon removal by 2040. These credits are generated and verified separately. The carbon-removal component of the deal is 10x larger than previous rock weathering projects. According to an assessment of 2021 by the U.N., rice paddies are responsible for 10 to 12 percent of global methane emission. Environment Programme. The COP31 climate talks to be held in Turkey later this summer will focus on accelerating action against methane. Lower Costs The pressure is on the big tech companies to invest in clean energy and carbon removal to combat emissions from AI-driven data centres. Google has invested in Terradot after taking a stake in the company in 2024. The Intergovernmental Panel on Climate Change said that removal was needed to achieve the global climate goals. However, critics argue it could allow companies to pollute now. The companies stated that the model could be replicated and 'expanded' across Brazil’s 1.5 million hectares of rice fields, as well as in other rice-growing areas such India and Vietnam. Terradot will launch multiple pilots in different countries by 2026. Commercial scale-up is scheduled for?2028. Google and Terradot didn't disclose the price for the credits. However, a publicly revealed?2024 agreement for 90,000 tonnes of carbon removal by Terradot implied that the price was around $300 per ton. This is a lot higher than the $100 threshold many developers target to stimulate broader demand. James Kanoff, CEO of the company, said that while it is not yet $100 per ton at this time, "it represents a significant step towards that". Terradot stated that verification can add up to $100 per ton in enhanced rock weathering costs. This allows carbon removal to continue for longer, before third-party verifying would reduce this cost.
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Bonds steady as stocks rise, oil prices fall
Global stocks rose?on Wednesday, as recent increases in government bond yields?and oil prices stalled in advance of an important U.S. Federal Reserve?interest-rate decision later that day. MSCI's global equity index gained 0.2%, after having fallen in the two previous sessions. A?index? of Asia-Pacific stocks outside Japan rose 0.6% to end a four-day loss streak. The majority of European bourses were trading higher. The pan-European STOXX 600 gained 0.6%, and benchmarks in Germany, France, and Spain also saw gains. Futures that track the major U.S. stock indices also point to a higher opening after the benchmark S&P 500 closed lower on Tuesday, for the second consecutive session. The yield on the benchmark Treasury bond of 10 years reached its highest level since 2007. The yield on the 10-year Treasury Note in the United States fell to 4.97%, after reaching 5% earlier in the day. On Tuesday, it rose above the threshold for the first time since 2007 to reach its highest level since 2007. Federal Reserve announces its policy at 2 p.m. Kevin Warsh will hold a presser at 2 p.m. ET, followed by the announcement of the Federal Reserve's policy decision. It's a matter of credibility that he raises rates now. "If he does not hike this evening, there could be problems for the Fed's independence, credibility and the stock market," Michael Nizard said, the head of multi-assets and overlay at Edmond de Rothschild Asset Management, in Paris. It's also about guidance and a response function from the Fed. It's difficult to define?exactly? what a Fed reaction function is today. U.S.?President Donald Trump repeatedly expressed a preference to lower interest rates. He said last month that the U.S. will stop trading with nations with whom it has a trade surplus if the Fed does not reduce rates. The traders have mostly ignored those comments, and now see a rate increase as almost certain. According to CME Group’s FedWatch tool the markets are pricing in a 92.7 percent probability that the Fed will announce a 25 basis-point rate hike. This is up from 61.2 percent a week earlier. The dollar index (which measures the U.S. against six other currencies) held steady at 99.64. This is near a two-week peak. The Japanese yen remained at 155 to the dollar, after slipping in the two previous sessions. This is ahead of Friday's Bank of Japan policy announcement when the markets expect interest rates to reach their highest level since 31 years. British stocks rose and the pound fell 0.1% after an inflation reading in the UK did not change expectations before the Bank of England's policy announcement on Thursday. The markets were expecting the rates to stay the same. Rates are still expected to increase by the end of the year. Sterling could strengthen in coming weeks if BoE announces hikes amid rising inflation and energy costs. The Japanese yen could also weaken if BoJ's messages fall short of market expectations," UBS Global Wealth Management analyst said in a?note. As fuel supply disruptions sparked by the Middle East conflict raise concerns about energy-driven price inflation, central banks around the world are considering tightening monetary policy. Brent crude futures fell 1.5% to $107.1 per barrel on Wednesday after rising 2.9% the previous day. This was due to reports that Saudi Arabia offered additional crude cargoes through Oman, which eased concerns about 'the extent of supply disruptions. Digital assets have continued to fall after a steep selloff during the previous session when the U.S. Senate voted not to advance comprehensive cryptocurrency legislation backed up by Trump. Bitcoin rose 0.1%, to $75,954, after falling 4% the day before. Ether was flat, at $2,411, following a drop of 6.3% in the previous session.
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The Morning Bid - A time to Hike?
The Federal Reserve's decision on policy will be the main event of the week. The markets are overwhelmingly expecting a quarter point rate hike by the Federal Reserve, its first since 2023. This is due to the resurgence of oil prices and the recent breaching of the important 5% Treasury yield mark. Fed Chair Kevin Warsh could find himself in a collision course with the White House if he increases rates, given Donald Trump's preference for an easing of policy. Warsh could lose credibility if he does not act, given the economic data that supports a rate hike. Warsh will face a major challenge with today's announcement and its messaging. The Fed chairman struck a hawkish note at Jackson Hole, last month. With U.S. unemployment still low and inflation above target, Warsh's credibility will be tested if he doesn't raise the benchmark rate. Donald Trump is still pushing for the U.S. having the lowest borrowing rates in the world. The U.S. President recently threatened to "stop trading" with certain countries if the Fed did not lower rates. However, markets haven't taken this threat seriously. The traders' biggest question is whether today's hike would be a one-off event or the beginning of a tightening cycle. When Warsh speaks today at 2:30 pm (1830 GMT), traders will closely watch his remarks for any hints on the future. Fed watchers will be closely watching the Fed chair's every word and action for clues as to what is coming. Recent expectations of monetary tightening have helped push the 10-year Treasury yield over the 5% mark. The 10-year Treasury yield dipped from this level on Tuesday, after reaching a 19-year peak of 5.041%. It has since tested it several times. At a Congressional hearing held on Tuesday, U.S. Treasury Sec. Scott Bessent admitted that the higher yields reflected the U.S. deficit, among other things, but defended the recent bond purchases, which he said had helped to contain the rise in borrowing costs. He also attributed the rising yields to global issues. He has a good point on the second. The resurgence of energy prices is causing new inflation fears, and bond yields are increasing globally. Saudi Arabia has suspended loading operations in its Yanbu port after the latest Middle East tensions escalated. Brent and WTI crude settled at their highest level since May 19, Tuesday. Early on Wednesday, oil prices fell, partly due to news about rising U.S. crude stocks, which helped stabilize bond and equity markets, that had fallen on Tuesday. Brent crude has risen around 19% in the last month because of increased Middle East supply disruption. For more information on the other big story of the past week, AI safety concerns, we must go back to Bessent’s congressional hearing. When questioned about recent concerns?about the pace?of technological development, he defended the Trump Administration's AI strategy. He stressed a balance between competitiveness and safety against China. Chart of the Day The financial markets bet heavily on Fed policymakers to raise their benchmark rate by a quarter percentage point. This would bring it up to a range of 3.75%-4.00% and signal future tightening. Watch today's events * Fed announcement of interest rates at 2 p.m. (EDT), Fed Chair Kevin Warsh gives a press conference at 2:30 p.m. * U.S. retail sales for August (8:30 am EDT) Check out Mike Dolan’s latest column to see how Trump's pledge of $5,000 per person could be viewed by an increasingly hawkish Fed. Listen to the latest Morning Bid Daily Podcast, where we discuss the impact of today's hike on Warsh and Trump's relationship. Subscribe to the podcast and hear journalists discussing the latest news in finance, markets, and markets. Want to receive Morning Bid every morning in your email? Subscribe to the newsletter by clicking here. You can find ROI's website and follow us on LinkedIn or X. The opinions expressed are solely those of the authors. These opinions do not represent the views of News. News is committed to the Trust Principles and upholds integrity, independence, as well as freedom from bias.
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Sources say that at least 60 people have been killed by a gold mine collapse in West Kordofan in Sudan.
Three local sources reported that at least 60 people were killed when a gold mine collapsed in Sudan's West Kordofan State?on Sunday. A local rights group claimed some miners may still be alive and called for an urgent rescue effort. The Kordofan Observatory monitoring team?said Wednesday that over 70 artisanal miner were 'dead or unaccounted for after a series adjacent mining shafts collapsed? at the al-Zara Mine in the Fouja Area, northwest of al-Nuhud. According to eyewitness reports, the group reported that another survivor was still alive below ground. The group said that no specialist rescue teams were present and the fragile, sandy soil was hindering residents in their attempts to recover bodies and rescue miners using basic tools. Three local sources, who spoke to the media on Wednesday, blamed the high death rate at the remote site on a lack in safety procedures and rescue equipment. Sudan is one of Africa's biggest gold producers. However, the majority of this?gold?is produced by dangerous artisanal miners and then smuggled outside the country. The paramilitary Rapid Support Forces (RSF) who control the state rely heavily on gold mining as a source of income.
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Highlights of EU Commission Chief's 'State of the Union' Address
Ursula von der Leyen, President of the European Commission, called on EU member states to create a new partnership in order to tackle climate change and other major challenges that face us all. Von der Leyen addressed a wide range of issues in her 73-minute "state of union" speech to the European Parliament at Strasbourg. She began with the opening lines of Charles Dickens Tales of Two Cities which, she claimed, also described the world of today. "It was a good time, but it was also a bad one". CANADA Von der Leyen stated that the EU is opening the door for Canada to become the first "associate" member of the 27-nation block, a statut which is not set forth in EU Treaties. Canada and the EU united in defense of Ukraine and believed in the democratic ideals and that power did not belong to the "strongest, richest, or loudest". The EU-Canada relationship should be at the highest possible level, focusing on cooperation in the areas of economic security, smart manufacturing, defence industries and the Arctic. Von der Leyen called the daily?EU goods deficit of EUR1 billion "unsustainable", and claimed that a tipping-point had been reached. She said that dialogue with Beijing had to produce results, and it was both parties' interest to find a resolution. "Let's be clear: We will use all of the tools available to us to rebalance your relationship. Words can be good. "Words are good, but actions are better," said she. She said that the EU would create a European Corporation for critical raw materials in order to stockpile and help procure supplies. CLIMATE Von der Leyen stated that the EU would launch a climate insurance alliance to increase insurance coverage for extreme weather events. Only 25% of the catastrophe losses in Europe is covered by private insurance. It means that national budgets are far too often the last-resort insurer. She said that we need to?take action to close this deficit. The European Commission is also presenting a European Heatwave Plan, which includes early warning systems, health preparedness and a water initiative that addresses leakage and improves risk management, as well as addressing the insurance gap. Von der Leyen proposed an upcoming European firefighting aircraft fleet to combat wildfires. Von der Leyen supported calls from leading U.S. artificial-intelligence labs to slow down the development of this technology. As the models get more powerful, these risks are more apparent. The models being developed will enable hacking at a level that we have never imagined. They will be soon in the hands of adversaries that see the world differently than us," von der Leyen said to EU legislators. "CEOs from the most advanced companies tells us it's time to slow down the self-recursive model. To keep up with the pace of innovation. "If the people who are developing the technology?are clear, we should also be," she said. Von der Leyen said that the EU should also step up its work to establish guardrails in conjunction with like-minded partners such as Britain and Canada. SOCIAL MEDIA The European Commission is set to propose Thursday that children under 13 years old are banned from using social media and parents can supervise "mini accounts" with limited features, and restrictions on time until the child turns 15 years old. UKRAINE/SECURITY Von der Leyen pledged that the EU will give its "strongest ever support" to Ukraine during the upcoming winter. She predicted that this would be the most difficult of the war caused by Russia's invasion. She said that the EU would provide aid to Ukraine in terms of humanitarian assistance, and also increase power and heating supplies and strengthen Ukraine's defences. The European Commission chief proposed also a European Security Council which could?bring together the EU and other partners like Britain, Canada and?Norway?and establish an "emergency safety protocol" to allow EU members?to trigger?discussions in response to crises. MIGRATION The European Commission is proposing a system of emergency response to deal with sudden and massive influxes of migrants. "Europe must have the ability to defend its borders at any time. Particularly in scenarios where mass movements are engineered, weaponized and manipulated. "We will propose a European Emergency Response Framework", she said. The framework will only be activated under strict criteria, and it offers a limited time of flexibility to the affected countries.
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Data shows that Asia's diesel refining margins are at a record high of over $87 per barrel.
LSEG data showed that the Asian sulphur diesel refinery margins have reached a record high of slightly over $87 per barrel. The gains were primarily due to concerns about regional supply. According to data, this compares to pre-war levels around $22 per barrel. The last time the margins reached a record was at $85.6 per barrel towards the end of March. Front-month time-spreads hovered at just over $11 per barrel, nearing a five-month-high. In recent months, Asian refiners increased crude shipments and diesel production to take advantage of robust margins. They also shipped more diesel to distant markets like Africa to make up for shortages in the West. Sources and analysts have said that there are growing concerns about the near-term Asian oil supply risk. The market is now watching for another round of production cuts or run reductions as the escalating tensions of the Middle East increase the possibility of crude delivery delays. The Asian diesel situation is becoming more complex. In the past, Asia was better supplied by higher exports of?China and Korea, said Abhisek Kumar, senior oil market analyst with Sparta Commodities in a recent note. "But Asia is no longer immune from the risk premium." Fears about crude availability and Saudi disruption of supply have begun to lift Asian diesel. Since late last week, a few refiners began selling 'October spot cargos. The market is unsure whether the volumes will be comparable to September or August.
The sewage that contaminates Britain's waterways and oceans is a stain.
Under the dark seas of southern England, 400 millions mussels are encrusted on ropes that hang from buoys scattered over an area as large as the largest airport in the country.
The Holmyards built Europe's biggest offshore mussel farming in Lyme Bay. They believed that it would be able to handle the millions of gallons sewage that is pumped into UK water each year.
Even if the bacteria are far away, they can still pollute the water and block exports for several weeks to Europe. This could damage the business of a company that produces sustainable food.
Sarah Holmyard, the sales manager at the farm, said: "It is criminal that they are allowed to dump their waste in the oceans and get away without any consequences." It's affecting a lot of businesses including ours.
The Holmyards' problems, while affecting a small industry in Britain, show how the failure of basic services such as water or sewage can have a negative impact on the economy.
Interviews with 20 people, and data analyses show that polluted waters have also affected tourism and construction projects. This is a drag on economic growth at a time the new Labour Government is trying to jump start the economy.
According to a Freedom of Information Request, in the five years leading up to October 2024 the Environment Agency objected to 60 planning applications because of the pressure they would put on local sewerage networks.
Clean water activists have begun to oppose planning applications. They believe that this will more effectively pressure the government to fix the sewage system, than the current efforts which focus on harming biodiversity.
Ash Smith, a campaigner with Windrush Against Sewage Pollution, said that "money talks". Standing knee-deep in gray, untreated sewage in a local stream in Oxfordshire, Ash Smith explained that they were opposing house building in order to demonstrate how the water system has broken down the country's overall infrastructure.
Pumping sewage into rivers, seas and oceans has been a major scandal for Britain. Privatised water companies are accused of prioritising profits over investments and dumping sewage into waterways when their ailing infrastructure can't cope.
The pollution has discouraged wild water swimmers and angered surfer, led to warnings of toxic blue-green algae blooms in lakes, and created an army who are now experts in water quality, after noticing changes in waterways.
In England, water companies will discharge sewage for more than 3.6 million hours by 2023. This will pollute streams, rivers, and coastlines with sanitary items and condoms. It could also damage ecosystems and habitats.
SEWAGE SPILLS
British sewers combine rainwater and wastewater. Water companies can "spill" water into waterways during heavy rains to avoid sewers becoming overloaded. Many have been fined, however, for releasing too much sewage.
Environment Agency data shows that South West Water discharged sewage 530,737 times in 2023, an 83% increase from 2022, making it one the worst performers in England.
South West Water is looking at ways to improve the water quality in Lyme Bay.
We are ensuring that all designated shellfish waters in the region meet the government target of fewer than 10 spills a year, 10 years before the deadline. In addition, we plan to almost double our investment from 2025-30 to 2.5 billion pounds.
John Holmyard, his wife Nicki and their plan for a mussel farm was a complex one.
After years of farming mussels in the colder waters near Scotland, they looked for a location with warmer water and a good amount of nutrients to help them grow faster. The site had to be sufficiently far offshore to prevent runoff but also have some protection from the sea to reduce the swell.
After visiting other similar sites in Britain, Europe and China, they settled on Lyme Bay and spent seven long years getting planning and regulatory approvals - not knowing if their intuition would be right.
The Holmyards expect to reach 10,000-12,000 tonnes when the project is complete.
John Holmyard who runs the farm with Nicki, Sarah, and George said that they never thought sewage would affect their farm. "But, it hasn't worked out that way."
Shellfish producers have been affected by the toxic effects of sewage.
Prior to Britain leaving the European Union, mussels or oysters were able to be shipped directly to the continent without purification. After Brexit, only purified products or those from British waters rated Class A will be accepted by the EU.
This change has almost completely destroyed the mussel industry in north Wales, on Britain's West Coast. This region used to be the main source of Britain's exports into Europe, but it now only sells to Europe rarely due to a lack in bulk purification and poor water quality.
Shellfish Association of Great Britain SAGB says British exports could double if seas are cleaner.
James Green harvests and sells shellfish in Whitstable in southeast England, a town famed for its shellfish dating back to Roman times. He used to sell about half his product to markets in Europe and Hong Kong, but Brexit, and issues with water quality, have forced him to only sell purified oysters within the country.
Southern Water, his water supplier, will be fined 90 millions pounds in 2021 because it dumped sewage for five years, up to 2015. This caused a disruption in harvests and exports. He was not compensated and said it's hard to wait until improvements.
He said, "I have a business." "Can you hold off until the changes kick in in five, six or seven years?"
Green tracks rain and sewer overflows in order to assess the risks of harvesting his oysters. He also monitors E.coli, Salmonella, and Norovirus.
Southern Water announced that it would invest heavily in order to maintain the high quality of its shellfish beds along its coast.
The 2021 court case involving events that occurred between 2010 and 2015. It found no evidence to support the impact of these events on shellfish beds. These beds are affected by a variety of factors.
Driven to despair
Holmyards mussels have been tested almost daily for E.coli contamination in the Netherlands and always come out within the Class A limits.
The British authorities have reported high E. coli numbers in monthly tests of similar nature, and classified parts of the farm as Class B.
Negative readings in the British system can result in different harvests. Holmyards was stopped from exporting their mussels from this part of the farm for a few weeks and the area was also classified as Class B at the same time next year.
The family finds it strange, because bacteria from the beach should have been heavily diluted before they reached the farm. Also, the British results don't match the Dutch tests that are more frequent.
John stated that they have been unable since Brexit to raise new capital due to the threat of export bans.
Food Standards Agency in Britain, which is responsible for classifying areas where shellfish are harvested, has said that it tried to be flexible but had to protect the public's health. It also added that classifications will only improve as water quality improves.
Sarah and George explained that an annual survey had shown the farm to have spawned a variety of species such as lobster and crab.
In Europe, their blue mussels are a premium product, renowned for their sweet, rich flavour. Despite the bans, Holmyards exports about 95% their mussels into the EU. The rest is sold in Britain.
The tourism bosses believe that this type of locally produced, high-quality food is what they should be promoting to potential holidaymakers.
Alistair Handyside is the chairman of South West Tourism Alliance. He said that while weather and costs were the main factors affecting tourism, the talk about sewage has damaged the appeal of some locations.
He said, "It makes you despair."
TOXIC EXPOUT
The sight of litter and sewage on beaches and rivers has also prompted thousands to protest.
Sally Burtt Jones was one of SOS Whitstable's founders. She is part of a group that organizes protests, tests the local water, and campaigns for legislation change.
She expressed her pride in her work as a campaigner. She said, "We care for the community and sea." "When we come together, we can bring about change."
John Reeve is a representative of Surfers Against Sewage in Saltburn, a seaside town located on the coast of the Northeast. He has studied geology and worked with local officials to determine how to manage rainwater when storms are becoming more intense due to climate changes.
He said, "We're making a change over time."
Water industry claims it has made significant investments in infrastructure since privatisation of 1989. However, population growth and climate changes have created new pressures during a period when successive governments and regulator Ofwat were focused on keeping bills low for customers.
Ofwat reported that water companies in England & Wales have paid out 53 billion pounds ($66billion) in dividends since privatisation, and collective net debt of 69.5billion in 2024.
The government has also gained the power to tie dividends to performance. It has proposed that customer bills increase by 36% on average before inflation in the next five year to fund upgrades to infrastructure. The government is reviewing the sector.
Ofwat's spokesperson stated that customers want change: "We must see a transformation of the culture and performance of companies." We will monitor companies and hold them accountable."
The Environment Agency has also been a hindrance to construction due to the failures of sewage systems.
Most objections to housing, retail, office, school, science business park, and leisure centres are overcome by finding ways to reduce the impact.
The objections can add to the time, costs and complexity of building projects. This is a major challenge for the government, which wants to stimulate a boom in infrastructure and housing construction.
The biodiversity of the world has been affected by water pollution.
The stocks of Atlantic Salmon, which spawn in the freshwater breeding grounds of Britain, have reached new lows. The rod catch for 2023, as declared in the provisional declarations, is the lowest since 1988.
Environment Agency blamed the Holmyards for the pollution and sedimentation.
Sarah stated that the potential of the business being duplicated elsewhere is huge. But if the same problems of not being allowed to export due to the water quality are present, it will not work. ($1 = 0.8046 pound) (Reporting and editing by David Clarke; Kate Holton, Dylan Martinez)
(source: Reuters)