2025-11-06 12:20

Still retains plans to get to net-zero by 2050 Follows updated analysis from the International Energy Agency Company on track to hit $1 trillion sustainable finance goal LONDON/SAO PAULO, Nov 6 (Reuters) - HSBC (HSBA.L) , opens new tab on Thursday issued a set of new, softer near-term climate targets for sectors such as oil and gas in response to the slow pace of change in the real economy. The end-decade targets follow a review announced earlier this year as the British bank dropped a goal of reaching net-zero carbon emissions across its own operations by 2030. Sign up here. HSBC still aims for operations funded by its loan book to produce net-zero emissions by 2050. It and other banks that have set similar climate targets say they aim to help clients finance transitions to lower-emission business models. HSBC had originally based its targets on the International Energy Agency's 2021 analysis of what it would take to reach the world's goal of limiting global warming by 1.5 degrees Celsius by mid-century, work which has since been updated to reflect the slower than expected progress. HSBC's updated policy announced on Thursday now sets its targets for financed emissions for high-emitting sectors by 2030 as a range, rather than a single metric. The lower bound of each range is aligned with the IEA's net zero emissions 2024 scenario, consistent with a global warming pathway of 1.5 degrees, while the upper bound aligns with a 1.7 degrees pathway. For the bank's oil and gas clients, for example, the bank said it aims to see a reduction in financed emissions of between 14% and 30% by 2030 from a 2019 baseline, consistent with the IEA's two scenarios. The update on its transition plans from Europe's biggest bank shows how lenders are watering down some of their own commitments to help clients reduce emissions, amid wider setbacks in the fight against climate change. The bank's announcement also comes as world leaders gather in Brazil this week for the UN COP30 climate talks, and as EU climate ministers agreed a softened target to cut emissions 90% by 2040, from 1990 levels. HSBC said its new policy reflects commercial realities, and that the bank is still on track to meet a target of providing or facilitating $750 billion - $1 trillion in sustainable finance by 2030. https://www.reuters.com/sustainability/cop/hsbc-softens-near-term-emissions-targets-polluting-sectors-2025-11-06/

2025-11-06 12:16

LONDON, Nov 6 (Reuters) - Chemicals group Solvay (SOLB.BR) , opens new tab would be interested in building a rare earths processing plant in the United States, where financial support is stronger than in Europe, its CEO said on Thursday. Solvay, one of a few companies outside of China capable of the complex rare earths separation, in April launched modest processing of minerals needed for permanent magnets at its French plant, but said commercial production would depend on support from customers and governments. Sign up here. The United States, Europe and allies have been racing to create domestic industries to make super-strong rare earth magnets vital for defence, electric vehicles, electronics and wind turbines and cut dependence on China. Solvay has not yet given the green light for an investment of 50-100 million euros to expand its French plant as it continues talks with customers and governments, CEO Philippe Kehren told reporters on a results call. "We feel limited support today still in Europe, so we continue to work with the European policymakers in order to see how to create those conditions. We see more support coming from North America to be perfectly clear," he said. MP Materials (MP.N) , opens new tab, which owns the only U.S. rare earths mine, sealed a multi-billion dollar deal with the U.S. government in July so it could boost processing and produce magnets. When asked if Solvay would be interested in building a U.S. separation plant if it received government support similar to MP Materials, Kehren said: "The answer is yes". "We're a global company and we have a unique know-how. We can take any source of rare earth material and separate, purify, and supply any type of customers," he said. "And MP Materials is a miner, so they also need this know-how, you know, to separate and purify their material." When asked if Solvay had held talks with the U.S. government, a spokesperson noted that Kehren had said Solvay is global and is "in talks with all stakeholders". Four decades ago, Solvay's plant in La Rochelle on France's Atlantic coast was one of the largest in the world, but production spiralled lower over the years as China ramped up cheaper output to now account for about 90% of the world's processed rare earths. So far the 161-year-old company is producing a few hundred metric tons a year of magnet rare earths neodymium and praseodymium and plans to add heavy elements dysprosium and terbium next year, Kehren said. https://www.reuters.com/world/china/solvay-open-building-rare-earths-plant-us-where-support-is-stronger-2025-11-06/

2025-11-06 12:12

US dollar slips from four-month peak US Supreme Court raises doubts over legality of Trump's tariffs Traders see 72% chance of US interest rate cut in December Nov 6 (Reuters) - Gold prices edged up on Thursday, buoyed by a weaker dollar and a resurgence of safe-haven demand on concerns over a prolonged U.S. government shutdown and uncertainty over the legality of tariffs. Spot gold was up 0.2% at $3,989.91 per ounce by 1:40 p.m. ET (1840 GMT). U.S. gold futures for December delivery settled little changed at $3,991. Sign up here. The dollar (.DXY) , opens new tab fell 0.5% after hitting a four-month high in the previous session, making gold cheaper for overseas buyers. With the U.S. government shutdown and skepticism from U.S. Supreme Court justices on the legality of U.S. President Donald Trump's sweeping tariffs, "we're seeing a revival of the haven bid," said Peter Grant, vice president and senior metals strategist at Zaner Metals. "(Gold) is on track for a fairly decent close to the year ... I’d say a year-end target in the $4,300 to $4,400/oz range seems reasonable." The U.S. Federal Reserve cut interest rates for the second time this year last week, with markets anticipating a 72% chance of another cut in December. /FEDWATCH Fed Bank of Cleveland President Beth Hammack said on Thursday ongoing high levels of inflation argue against the U.S. central bank cutting interest rates again. Gold is considered a hedge during times of uncertainty. The non-yielding asset also benefits in low-interest rate environments. Traders remain cautious, watching for fallout from U.S. President Donald Trump’s trade policies and risks tied to a prolonged U.S. government shutdown. "It would surprise us were gold to stay rangebound around $4,000/oz as speculative capital exits, with central bank buying remaining the primary positive tailwind going forward," SP Angel said in a note. Elsewhere, spot silver added 0.3% to $48.22 per ounce, platinum was down 1.8% at $1,533.93, and palladium fell 2.7% to $1,381.18. https://www.reuters.com/world/india/gold-firms-softer-dollar-us-government-shutdown-2025-11-06/

2025-11-06 12:12

LONDON, Nov 6 (Reuters) - The Bank of England, which kept interest rates on hold on Thursday in a tight vote, for the first time set out the views of the individual members of its Monetary Policy Committee. The MPC voted 5-4 to keep borrowing costs at 4%. Deputy governors Sarah Breeden and Dave Ramsden, external MPC members Swati Dhingra and Alan Taylor backed a cut to 3.75%. Most economists polled by Reuters had predicted a 6-3 split to leave Bank Rate unchanged. Sign up here. Below is a summary of the reasoning behind the nine policymakers' decisions: MPC MEMBERS WHO VOTED FOR NO CHANGE ANDREW BAILEY, GOVERNOR Bailey said he wanted to confirm that the slowdown in inflation is sustained this year in order to start cutting rates. British consumer price inflation unexpectedly held at 3.8% in September, below the BoE's forecast for a rise to 4%. He said that the current market pricing for rates reflected his position. "Recent evidence points to building slack in the economy, and the latest CPI data were promising. But this is just one month of data. Labour costs remain elevated and wage growth, while on a downward path of late, may plateau." "Rather than cutting Bank Rate now, I would prefer to wait and see if the durability of disinflation is confirmed in upcoming economic developments this year." CLARE LOMBARDELLI, DEPUTY GOVERNOR Lombardelli said she was worried there might still be underlying inflationary pressures in the economy, despite the recent slowdown in price growth. "Structural changes in the labour market may mean there is less slack in the economy, leading to more persistent inflationary pressures." "While I find the ongoing weaker consumption scenario compelling, we have plenty of policy space to lower Bank Rate should it be necessary, while a policy reversal would be costly for the MPC's credibility." HUW PILL, CHIEF ECONOMIST Pill judged that the pace of rate cuts so far had been too fast, saying that he preferred a more cautious approach to reducing borrowing costs due to the risks of persistent underlying inflation pressures. "I continue to prefer a slower pace for the withdrawal of monetary policy restriction than delivered over the past 18 months, reflecting my longstanding concern that structural changes in price and wage-setting behavior have generated stronger intrinsic inflation persistence in the UK, resulting in more sustained above-target underlying inflation." CATHERINE MANN, EXTERNAL MPC MEMBER Mann said the cooldown in the labour market was slow, and a firm stance was needed to ensure inflation returns to the BoE's 2% target. "Administered prices could jump again, elevated household inflation expectations risk further second-round effects, and wage inflation is expected to remain above target-consistent levels next year." "Monetary policy needs to rein in both inflation and expectations drift so as to reinforce commitment to our 2% target." MEGAN GREENE, EXTERNAL MPC MEMBER Greene said she was concerned inflation risks were on the upside, and that the disinflation process in Britain had slowed, with wage growth remaining elevated next year due to firms' increased employment costs. "I am not convinced the monetary policy stance is meaningfully restrictive. There is huge uncertainty around the neutral rate, but as we approach it the risk of cutting too far or too fast rises and it becomes more difficult to discern whether inflation is driven by the monetary policy stance or underlying dynamics." MPC MEMBERS WHO VOTED FOR 25 BASIS POINT CUT TO 3.75% SARAH BREEDEN, DEPUTY GOVERNOR Breeden voted against the majority for the first time in the November meeting. She said the upside risks to inflation had not materialized and that some slack in the jobs market would continue to weigh down on pay growth. "Combined with my view that policy remains restrictive and slack continues to build, this gives me enough confidence to cut now." "We will need a higher accumulation of evidence on disinflation as we feel our way towards neutral next year, where I see benefits in retaining some insurance against potential structural changes in the labour market. But in the absence of conclusive evidence that this is happening, I support gradual policy reduction now." DAVE RAMSDEN, DEPUTY GOVERNOR Ramsden said that a gradual pace of reducing rates remained appropriate as the jobs market loosens and uncertainties around the slowdown in inflation dissipate. "I place weight on our central projection and see risks around it as broadly balanced, although the downside risks are now more prominent to me relative to August, particularly as previous uncertainties around the disinflation process have reduced." SWATI DHINGRA, EXTERNAL MPC MEMBER Dhingra said disinflation remained on track and there was limited risk of food price inflation generating second-round effects. "My view remains that Bank Rate should have been lower already to account for lags in its transmission to the real economy." "Policy is overly restrictive and could exacerbate risks from weak demand and reduce supply." ALAN TAYLOR, EXTERNAL MPC MEMBER Taylor said borrowing costs were too restrictive, and that his outlook was weaker than the central projection, partly due to the slowdown in wage growth and inflation. He said there was a risk that price growth falls below the 2% target. "I judge that the current slack is larger, and the terminal rate lower, implying that the current stance is more restrictive than intended." "I place weight on our other models that suggest inflation may not stop falling in the second half of next year and could undershoot." https://www.reuters.com/business/finance/bank-england-policymakers-views-close-november-rates-decision-2025-11-06/

2025-11-06 11:56

FAA requires phased flight reductions at major US airports, starting with 4% cut on Friday Airlines scramble to adjust schedules amid flight reductions Major carriers offer flexibility for changes, use bigger aircraft Passenger stress rises with delays, cancellations and uncertainty CHICAGO/WASHINGTON/NEW YORK, Nov 6 (Reuters) - U.S. airlines scrambled on Thursday to rejig schedules and field calls from anxious customers after the Trump administration ordered flight reductions at major airports due to a shortage of air traffic controllers during the longest government shutdown in history. The cuts, set to begin on Friday, were expected to hit hundreds of thousands of travelers with little notice. Aviation analytics firm Cirium estimated the reductions would cancel up to 1,800 flights and cut 268,000 airline seats a day in the U.S. International flights are not affected. Sign up here. The timing, during a period of low travel demand, was making it easier for carriers to rebook passengers by cutting flight frequencies on some routes and using bigger planes. Analysts said the impact on airline earnings was likely to be modest as long as the shutdown ends before the peak Thanksgiving travel period later this month. "During the current low season, airlines tend to have lighter load factors, so the ability to accommodate passengers is higher," said Savanthi Syth, an analyst at Raymond James. Shares in major U.S. carriers, including Delta Air Lines (DAL.N) , opens new tab and United Airlines (UAL.O) , opens new tab, closed between 1% and 2% lower on Thursday. AIRLINES OFFER FLEXIBILITY FOR CHANGES In line with the federal directive, Delta announced the cancellation of about 170 U.S. flights on Friday, with fewer expected on Saturday due to lower travel volume. The carrier normally operates 5,000 daily flights globally. The airline said it plans to cancel flights a day in advance to give customers options well before they head to the airport. "We're operating the vast majority of our schedule and intend to keep access to all of the markets we serve, though frequency may be affected," Delta said. United said it plans to cut 4% of its flights Friday through Sunday, resulting in less than 200 daily cancellations. The Chicago-based airline operates around 4,500 flights a day. American Airlines (AAL.O) , opens new tab reduced its schedules by 4% across 40 airports, amounting to around 220 flights canceled each day from Friday through Monday. Southwest Airlines (LUV.N) , opens new tab will cancel about 120 flights on Friday. Alaska Airlines (ALK.N) , opens new tab has begun canceling a limited number of flights from Friday. The carrier said that most cancellations would affect high-frequency routes, allowing the majority of customers to be re-accommodated with minimal disruption. Discount carrier Frontier (ULCC.O) , opens new tab said most of its flights would operate as planned, though in a LinkedIn post its CEO Barry Biffle advised customers traveling to funerals or other critical events over the next 10 days to book backup tickets on different airlines. All major carriers were offering customers greater flexibility to change or cancel trips. USING BIGGER PLANES Airlines can lessen the disruption by using bigger aircraft, a strategy they already employ to deal with congestion in New York-area airports. Still, passengers inundated carriers on social media platforms like X with questions and comments as they tried to clarify their travel plans. While sales of its "disruption assistance" service have risen steadily since the shutdown began on October 1, travel app Hopper reported an overnight jump of nearly 60% after the government announced flight cuts. Transportation Secretary Sean Duffy on Wednesday ordered flight cuts to start on Friday at 40 major U.S. airports, including in New York, Los Angeles and Chicago, affecting both commercial and cargo services. The Federal Aviation Administration will require airlines to cut flights in a phased manner, starting with a 4% reduction on Friday and rising to a full 10% cut by November 14, according to a document seen by Reuters. Duffy cited safety concerns due to the shutdown, caused by a political stalemate in Congress over funding government operations. During the closure, 13,000 air traffic controllers and 50,000 security screeners have been forced to work without pay. Absenteeism has risen to 30% or more at some airports as the workers turn to second jobs to feed their families or are unable to afford childcare. Even before the shutdown, the FAA was already short about 3,500 air traffic controllers, and many were working mandatory overtime and six-day weeks. Airlines have estimated that at least 3.2 million travelers have been delayed during the shutdown. STRESS FOR PASSENGERS Following a dip in corporate and leisure bookings in the first half of the year, U.S. airlines had projected a period of steady demand this quarter. Yet, even as reduced capacity is expected to drive up airfares, the uncertainty caused by the shutdown may depress consumer travel spending. Passenger traffic declined in the first week of November from a year ago after rising in October, data from the U.S. Transportation Security Administration showed. Airlines for America CEO Chris Sununu urged customers to "stick with their current travel plans" amid a drop in bookings. But even before the new flight cuts went into effect, customers said flight delays and cancellations were causing misery. Delaware-based Grace Logeman, 40, drove two hours on Thursday to Newark, New Jersey for a Frontier flight to Atlanta that was delayed by three hours. The delay caused her to miss a connecting flight to the Dominican Republic for her sister's birthday. "I'm devastated," Logeman said while on hold with the airline's customer service line. "As far as the ongoing shutdown...it's hurting me. I'm the one sitting here now." https://www.reuters.com/sustainability/sustainable-finance-reporting/us-airlines-scramble-rejig-schedules-government-orders-flight-cuts-2025-11-06/

2025-11-06 11:48

Exxon, Chevron increasing presence in eastern Mediterranean Deal lauded by US delegation in Greece Deal comes as Europe tries to wean itself off Russian gas ATHENS, Nov 6 (Reuters) - Exxon Mobil (XOM.N) , opens new tab has signed a deal to explore for natural gas offshore Greece, increasing the U.S. presence in the eastern Mediterranean just as the Trump administration seeks to replace Russian energy flows into Europe. The United States, which holds vast reserves of domestic natural gas, wants to provide a larger share of Europe's energy mix via liquefied natural gas as the European Union seeks to phase out Russian gas imports in the coming years. Sign up here. "We have a tremendous opportunity right now to displace all of the Russian gas - every last molecule - out of western Europe," U.S. Energy Secretary Chris Wright told a conference in Athens on Thursday. "Every molecule that Russia does not sell into Europe…stays in the ground, it does not go into the pocket of Russia’s war machine." Under Thursday's deal, Exxon will partner with Energean (ENOG.L) , opens new tab, whose flagship gas fields are located offshore Israel, and Helleniq (HEPr.AT) , opens new tab to explore for natural gas in Block 2 offshore Western Greece, the companies said on Thursday. "This significant exploration agreement paves the way for potential future exploratory drilling investments in the 2027 timeframe," said John Ardill, Exxon's vice president of global exploration. GAS COULD FEED INTO TAP PIPELINE The first exploratory drilling is expected in late 2026 or early 2027. Exxon Mobil expects the first gas from the project in the early 2030s if all goes well, Ardill told Reuters on the sidelines of a conference in Athens. The project will require an investment of between $50 million and $100 million, he said. Greece, which produces small volumes of oil and relies on hefty gas imports for power generation and domestic consumption, has been keen to explore for gas and bolster its role as a transit route for Europe. Last month it named a consortium of Chevron (CVX.N) , opens new tab and Helleniq as the preferred bidder for exploration in other offshore blocks. Gas could be fed into the Greek domestic market but, given the project's proximity to southern Italy, it could also join the TAP pipeline system that carries gas from central Asia to Italy, Energean Chief Executive Mathios Rigas told Reuters in call. U.S. OFFICIALS LAUD NEW DEAL Exxon will take a 60% stake in the concession, while Energean will have 30% and Helleniq Energy 10%. Energean will run the project during exploration and Exxon will take over if exploration drilling proves successful, the companies said. In July, Europe pledged to buy $250 billion a year in U.S. energy, from oil and liquefied natural gas to nuclear technology, for the next three years. U.S. officials who attended the signing ceremony at the Athens conference lauded Thursday's deal. "America is back and drilling in the Ionian Sea," said the United States' new ambassador to Greece, Kimberly Guilfoyle. https://www.reuters.com/business/energy/exxonmobil-joins-gas-exploration-project-off-greece-2025-11-06/