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The European Parliament backs a year-long delay in the deforestation laws
The European Parliament voted on Wednesday to delay the implementation of the European Union deforestation legislation by an additional year. The European Parliament announced that companies will have another year to comply with the new EU regulations to prevent deforestation. The obligations of the regulation will apply to large operators and traders as of December 30 2026 and to micro and small businesses from June 30 2027. The EU's green agenda is built around the ban on cocoa, palm and other products linked to deforestation. This policy, a world first, aims to stop the 10% global deforestation caused by EU imports of soy, beef and palm oil, among other products. However, it has become a controversial part of Europe's environmental agenda. Some industries and countries are opposed to the plan, claiming that it is costly and logistically difficult. Environmental setbacks have been a concern for critics in the past. Nestle, Ferrero, and Olam Agri are among the food giants that support this law. They warned Last month Delaying the implementation of this directive is contrary to EU goals for simplifying business regulations and endangers forest worldwide. Business For Nature, a group that advocates for environmental issues, called the delay a "deep failure of political courage". (Reporting and editing by Bart Meijer, Ed Osmond, and Charlotte Van Campenhout)
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Sources say that the insurance review has delayed the discharge of Russian oil cargo at Indian ports.
Three industry sources who have direct knowledge of this matter say that a Western-sanctioned ship with Russian oil bound for Indian Oil Corp had its discharge delayed in a port in Eastern India because of a delay in the online verification of insurance coverage provided by a Russian provider. India tightened its insurance regulations for ships that call at its ports earlier this year, focusing on older and so-called "shadow fleet" vessels which are often used to transport Russian oil. LSEG data revealed that the Aframax Tiger 6, under sanctions from the European Union and UK, was supposed to discharge cargo of ESPO-grade on November 23, but was spotted floating near Paradip Port on Wednesday afternoon. Two sources claimed that the ship is in the process berthing Paradip. India's increased security in ports is evident by the delayed unloading. India requires online verification of insurance policies for all ships insured by companies not part of the International Group. This is to prevent forged documents from being presented to Indian port authorities. Non-IG insurers cover many shadow fleet vessels. Sources said that Russia's Soglasie Insurance Co Ltd had insured the vessel transporting oil for the state-run Indian Oil Corp. They added that the cargo had been supplied by an un-sanctioned company. Soglasie and Indian Oil have not responded to our requests for comment. India recognizes P&I coverage provided by 19 non IG insurers including eight from Russia. This allows the South Asian nation to continue purchasing discounted Russian oil.
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Gold prices near two-week high as Fed rate cuts fuel bets on tepid US economic data
Gold prices rose by more than 1% on Wednesday to a two-week-high after positive U.S. data boosted expectations for a Federal Reserve rate cut in the coming month. This supported non-yielding gold. At 1208 GMT spot gold rose 1% to $4,172.18 an ounce, its highest level since November 14. U.S. Gold Futures for December Delivery were up 0.7% to $4,168.70 an ounce. Market participants are beginning to price again a U.S. interest rate cut for December," stated UBS analyst Giovanni Staunovo. Bullion is a non-yielding investment that tends to do well in environments with low interest rates. Staunovo stated that "we continue to see more upside in the short term. We have a forecast for year-end of $4,200/oz, and $4,500/oz by mid-next year." The data released on Tuesday revealed that U.S. retailer sales rose less than anticipated in September, but producer prices were within estimates. In November, U.S. consumer sentiment also declined as consumers became more worried about their finances and jobs. These data were released in response to a recent series of dovish remarks from Fed policymakers. The CME FedWatch tool shows that traders now expect an 83% probability of a Fed rate reduction next month, up from 30% one week ago. A report that White House economist Kevin Hassett is the frontrunner for the position of the next Fed Chair has also added to the support for the metal. This confirms expectations about a dovish approach in policy, as favored by Donald Trump. Investors are now awaiting the U.S. Weekly Jobless Claims Report due later on Wednesday. This report is a crucial gauge of labor market health and Fed policies. Deutsche Bank has raised its gold forecast for 2026 to $4450 per ounce, up from $4,000 citing stable investor flows and persistent demand by central banks. (Reporting by Noel John in Bengaluru Editing by Mark Potter) Reporting by Noel John, Bengaluru Editing Mark Potter
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JSW's voluntary job reduction plan attracts high interest among workers, CEO claims
Boguslaw Olesky, the acting CEO of Polish coal miner JSW, said that an internal survey showed that more than 6,000 workers were interested in the planned reduction in workforce. This is almost twice the number eligible to participate. Oleksy stated that the plan is contingent on a newly enacted mining law and aims to reduce jobs in two ways: "mining leaves", which are state-funded furloughs leading to retirement for more than 3,100 workers; and voluntary severance package for 700 others. JSW is facing a cash crunch. Oleksy said that the stabilization fund of the company was "on its way to depletion", which forced it to look for new external funding as it continued to report quarterly losses. The company also said that the broader cost-cutting plans include selling non-core assets and merging mines to create two "mining centers" in order to improve efficiency. It also removes a 10-year guarantee of employment for 1,000 administrative staff. Oleksy stated that negotiations with unions regarding cuts to other benefits were "extremely hard." JSW employees are represented by over 80 unions. The unionization rate is nearly 170%, as many of them belong to more than one organization. This complicates the negotiations. (Reporting and editing by Milla Nissi - Prussak. Additional reporting by Rafal nowak.
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Mamdani faces a test after NYC comptroller's push to drop BlackRock
Brad Lander, New York City Comptroller, is urging officials of the city pension funds to rebid the $42.3 billion managed BlackRock due to climate concerns. This is the first major step taken by a Democrat in order to counter the pressure from Republican allies who support the fossil fuel industry on financial firms. Lander's tenure ends on December 31. His recommendation, which will be announced on Wednesday, puts Mayor-elect Zohran Mdani on the spot when he assumes office in five weeks. Mamdani’s appointees are in key positions and will have some influence over the pension boards, which decide where to invest retirement money for 800,000. Lander, in a memo he sent to other trustees of pension funds on November 25, urged them to re-evaluate their contracts with New York's BlackRock. BlackRock is the largest asset manager in the world and also the largest manager of retirement assets for the city. Lander pointed to what he described as "BlackRock’s restrictive approach to engaging" with approximately 2,800 U.S. firms in which the company owns more than 5 percent of the shares. 'Abdication of Financial Duty' BlackRock, under pressure from the Trump Administration in February, said that it would not try to control businesses through its discussions with executives. This was contrary to Lander's and other investors who were environmentally conscious, as they wanted to pressure executives to disclose emissions. Lander stated in an interview that the change is "an abdication from financial duty" and makes them incapable of meeting our expectations regarding responsible investing. The pension boards, which traditionally follow the lead of the comptroller’s office, must still approve his recommendation. Mamdani's representatives and those of Mark Levine, the incoming New York Comptroller in New York, did not answer questions on Tuesday. Lander, who was a rival of Mamdani's during the mayoral race, but became an ally, suggested that the pension funds continue to use BlackRock for the management of non-U.S. index mandates, and other products. Lander recommended that the three pension plans continue to use State Street for managing $8 billion of equity index assets and drop deals with Fidelity Investments or PanAgora. He also said they did not push companies enough on environmental issues like decarbonization. WASHINGTON PRESSURE A number of Republicans, some from fossil-fuel-producing states, have withdrawn money from BlackRock and other money managers, accusing them of basing investment decisions on social or environmental issues. New York City funds are the first major asset owners with a liberal or Democratic leaning to do so. Environmental activists want Lander, and other public officials, to adopt a more aggressive stance by supporting shareholder resolutions which push corporate boards towards policies that combat climate changes. Richard Brooks, director of climate finance for Stand.earth advocacy group, stated that dropping major asset management companies "will be one the first tests to see the climate credentials of incoming mayors and comptrollers." I hope that they will take the initiative to get these recommendations passed. (Reporting and editing by Dawn Kopecki, Thomas Derpinghaus and Ross Kerber)
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Mitsubishi Materials will reduce primary copper smelting volumes by 30 to 40 percent by 2035
Mitsubishi Materials, a Japanese company, said it would shift its focus to secondary smelting in order to increase profitability. Due to a tight supply of concentrates and the expansion of smelting capacity by China, Japanese copper smelters face a tumbling treatment charge and refining charge (TC/RC) as well as shrinking smelting profits. Mitsubishi Materials announced in October it would cut the refined copper production at its Onahama Smelter & Refinery in the period October-March by a quarter. It plans to integrate its copper products sales and procurement of copper concentrates with rival Pan Pacific Copper owned by JX Advanced Metals Mitsui Mining and Smelting and Marubeni. Mitsubishi Materials announced a new three-year business plan beginning in April. The company said that it would shift its primary copper operations into secondary smelting by using electronic waste. It will also explore the possibility of building new secondary melting plants in Europe and America to boost growth. The secondary smelting process produces copper by recycling materials, rather than mining ore. Tetsuya Tanahka, President of Japan, said at a press conference that the low TC/RCs will continue. This makes the move to profitable eScrap processing vital for our sustainable growth. E-scrap is electronic waste, such as old computers, smartphones, and home appliances. He said: "We will quickly shift our focus from volume to quality. We'll transition our revenue structure from processing copper concentrate to secondary smelting, and optimise production systems and business portfolio." Tanaka stated that the company plans to double its secondary smelting capacities by 2035. However, it expects to see a drop of 20-30% in its annual refined copper production from around 400,000 metric tonnes due to a reduction in primary smelting. Mitsubishi Materials is also expanding its global tungsten business by increasing recycling capacity in Europe, and constructing new U.S. recycling facilities for the rare metal used in batteries and defense. Tanaka stated that by achieving a 100 percent recycled material rate in our tungsten production sites outside China, we will meet the rising demand and increase profitability. (Reporting and editing by Kirsten Doovan; Yuka Obayashi)
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South Sudan shakes up its petroleum ministry again, adding to the constant turbulence in government
Chol Thon Abel has replaced Deng Lual Wold as the undersecretary of the Petroleum Ministry. This is the fourth time that Salva Kiir, President of South Sudan, has moved the position from one man to another in less than two weeks. Kiir has fired and reinstated senior officials repeatedly without explanation. Analysts believe the tactic was used to reward loyalists and maintain control in light of the increasing conflict between government forces and militias this year, as well as speculation regarding his succession. As is customary with personnel changes, the state broadcaster did not provide any explanation for the change at the Petroleum Ministry on Tuesday evening. A government spokesperson was not available for immediate comment. South Sudan earns most of its revenue from crude oil, but the exports have plummeted due to the damage caused to pipelines by the civil conflict in Sudan. Kiir replaced Thon, who was responsible for the financial transactions at the Ministry, with Lual, the undersecretary. On November 3, he reinstated Thon, before replacing him again with Lual one week later. Kiir dismissed Ayuel Kacgor, the managing director of state-owned Nilepet oil company on Tuesday. Gizam Moses is an independent policy analyst specializing in governance and natural resource. He said that the constant turnover in government ministries encourages corruption, as officials will seek personal gain when they feel their tenure at a ministry may be limited. U.N. inspectors stated in September that the political elites are engaged in "systematic looting" of the nation's riches for private gain, with little of government revenues going to food security, health or education. The government denied certain specific allegations of corruption and said that the report was based upon faulty data. Kiir, who was widely believed to be Kiir's preferred successor for nine months, sacked Bol Mel and appointed his immediate predecessor. (Editing by George Obulutsa and Aaron Ross)
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UK shares rise as banks and miners gain ahead of Budget
UK stocks rose on Wednesday led by financials and mining shares, as investors prepared for a tax-heavy budget. Blue-chip FTSE 100 gained 0.2% at 10:55 GMT. The domestically focused FTSE 250 rose by 0.3%. Gold prices reached a two-week high following positive U.S. data that reinforced expectations for a Federal Reserve rate cut in the next month. Hochschild grew 4.4%, Endeavour Mining rose 3.6% and Fresnillo gained 3.9%. Copper prices rose, causing industrial miners to gain about 1%. Anglo American rose by 1.4%, while Antofagasta grew by 1.8%. After media reports that tax increases in the budget would be reduced, banks advanced by 0.5%. Standard Chartered rose 1.6% while Barclays gained 0.8%. Investors are now awaiting the autumn budget where Finance Minister Rachel Reeves will outline tax increases of tens and tens billions of pounds. Matthew Ryan, the head of market strategy for global financial services company Ebury, said in a report that any significant spending increases, possibly to welfare, coupled with increased borrowing would be a huge red flag for markets. Sterling and gilts are likely to sell off hard. The UK government approved a 4.1% increase in the minimum wage by 2026 on Tuesday despite some employers' complaints that it would push prices up. A survey revealed that the British public had lowered their expectations of inflation in the coming 12 months. U.S. Bank Citi said the results could increase the likelihood of a rate cut from the Bank of England by December. A Russia-Ukraine deal was also in the spotlight after Ukrainian President Volodymyr Zelenskiy indicated his willingness to move forward with a framework backed by the United States to end this war. Trump's decision to retract the deadline for the agreement left some uncertainty. BAE Systems, which is part of the Aerospace and Defence sector, increased by 1%. Diageo, the spirits company, lost 1.4%. Reporting by Utkarsh T. Hathi, Sukriti. Gupta and Rashiki Singh in Bengaluru, Editing by Tasim Z. Zahid
Brazil announces plan to increase climate finance up to $1.3 trillion per year
After a full year of discussions, COP30 hosts Brazil laid out a plan on Wednesday to increase climate finance from $1.3 trillion a years to $1.3 trillion a day. They also faced early signs that the political landscape was becoming more challenging as the Amazonian City of Belem prepared to host world leaders.
The document, which is almost 100 pages long, has been dubbed Baku to Belem Roadmap. It was created after months of discussions with various stakeholders following the conclusion of the event held in Azerbaijan last year.
As emissions continue to increase, some of the world's poorest nations are at greater risk from extreme weather events.
The European Union has agreed to a last-minute deal that will reduce emissions by 90 percent by 2040, but only if it is weakened by the inclusion of flexibility.
Jeroen Gérard, director of Climate Group's European office said that the EU made a dangerous choice today. It's a dismayed signal of leadership going into the COP30 conference next week.
The site for the talks is still under construction. However, the area reserved for the speeches of the leaders was nearly ready. Construction crews were making final repairs and placing plants and furniture.
The British government has also put Brazil to the test by refusing to commit any money to the Tropical Forests Facility, a plan that would protect the world's forests. This is seen as the host country's flagship goal, which aims to raise over $125 billion.
Sources said that the decision was disappointing to Brazilian President Luiz inacio Lula da So, especially since Britain helped to create it, and Lula personally wrote to Keir starmer, Prime Minister, last Friday, to ask for an investment.
According to anonymous sources, Lula also met separately with Ursula von der Leyen (President of the European Commission), Alexander Stubb (President of Finland), and Ding Xuexiang (Vice Premier of the State Council of China) to solicit contributions.
A Global Blueprint for Cooperation
The authors of the Roadmap, who are slashing global development aid, called it "a blueprint for cooperation and concrete results".
Mukhtar Babaev, President of COP29 who oversaw the Roadmap at a recent press conference, warned that it is important to recognize the magnitude of the problem.
"We try to interfere in the normal functioning world economy. We are attempting direct forces of global finance. This is a huge task.
"Success requires great political will." We will all need to be relentless in our efforts. "Countries cannot reduce emissions or adapt to the rising temperatures without capital", he said.
The report suggests that multilateral banks could help reduce the debt burden for developing countries by taking on more risk and giving more grants.
The resources are there, the science is solid, and the moral imperative cannot be denied. The report stated that the only thing left is to resolve to act. "We must turn the unimaginable to the inevitable and make this decade's accelerated implementation one where humanity's response matches its responsibility."
Rob Moore, Associate Director, Public Banks & Development, at the think tank E3G said that the document "lays the gauntlet down" and clearly outlined what was required.
For it to be effective, we need to see wealthy countries and international institutions of finance respond and take responsibility for the delivery. We must leave COP30 having a plan to turn these words into action. (Reporting and editing by Aurora Ellis; Lisandra Paraguassu, Simon Jessop)
(source: Reuters)