2024-08-21 11:45
FRANKFURT, Aug 21 (Reuters) - Germany needs to go beyond the European Union's guidance on fuels if it wants to achieve its 2045 goal of climate-neutral road traffic, auto association VDA said on Wednesday. The European Union's Renewable Energy Directive (RED III), adopted late last year, is not ambitious enough, the VDA said in a statement. "Politicians are called upon to establish incentives for the ramp-up of renewable energy sources and thus to guarantee and promote investment," VDA President Hildegard Mueller said. Germany's automotive industry wants to ensure that CO2-neutral fuels such as biofuels and e-fuels come onto the market in sufficient quantities to power the 40 million combustion-engine vehicles that will still be on the streets even if the government hits its target of 15 million electric cars by 2030. The VDA is concerned that the 2030 targets do not create enough incentive for the mineral oil industry to invest in the production of climate-friendly fuels. The EU target is for an at least 29% share of renewable energy by 2030 or a 14.5% reduction in greenhouse gases compared with emissions that would have been created by fossil fuel use. Germany, Europe's largest economy, has already decided to aim for a higher reduction rate of 25%, but the VDA believes 35% is necessary instead. The EU regulation also stipulates a quota for biofuels and synthetic fuels of 5.5%, with a 1% minimum synthetic fuel share. For the latter, the VDA calls for at least 5%. Further interim targets should also be set to reduce greenhouse gas emissions by 60% by 2035, 90% by 2040 and 100% by 2045, said the VDA. "In the interests of climate protection, fossil fuels should no longer be allowed to be sold at German petrol stations from 2045," added the association. Sign up here. https://www.reuters.com/sustainability/climate-energy/germanys-auto-industry-calls-stricter-climate-targets-fuel-suppliers-2024-08-21/
2024-08-21 11:10
NEW DELHI, Aug 21 (Reuters) - Indian wheat prices rose to their highest level in nearly nine months on Wednesday and could surge further during the festival season unless the government starts releasing stocks from its warehouses, industry figures told Reuters. "Wheat supplies are falling by the day and the overall supply situation looks worse than last year, and that's why the government should immediately start offering wheat from its own stocks," said a large flour mill owner from the wheat-consuming states of southern India. Wheat prices have touched 28,000 rupees ($334) per metric ton, up from 24,000 rupees in April, he said. Last year the government started selling wheat from its reserves in June, and between June 2023 and March 2024 it sold a record amount of nearly 10 million metric tons from stocks. That helped bulk buyers such as flour millers and biscuit makers to secure supplies of the staple at affordable costs. "We are in the second half of August now and the government is yet to start offering wheat from state reserves, and this delay has led to a further rise in wheat prices," the flour mill owner said. India initially planned to sell wheat from its state reserves to bulk consumers from July, Reuters reported in June, citing a government order, but this was delayed and there has been no subsequent update on its plans. A government spokesperson didn’t respond to an emailed request for comment. IMPORT TAX Another flour miller from the southern state of Karnataka said the government should no longer drag its feet over freeing up some stocks from its inventories. Both flour millers, who did not wish to be named ahead of any government decision, said India should also remove a 40% wheat import tax to facilitate imports from countries such as Australia and Russia. Earlier this year, Reuters reported that India was poised to begin wheat imports after a six-year gap to replenish depleted reserves and hold down prices that jumped following three years of disappointing crops. "In the physical market, supplies are dwindling since farmers have sold almost their entire crop. Everyone is now waiting for the government to start releasing stocks," said a New Delhi-based dealer with a global trading firm. India will celebrate Dussehra in October and Diwali in November, when wheat demand usually rises. The government is delaying wheat sales because it has limited stocks for market intervention until the next crop starts in April, the dealer said. Wheat stocks in India's government warehouses on Aug. 1 were 26.8 million tons, down 4.4% from a year ago. After five consecutive record harvests, a sharp rise in temperatures shrivelled the wheat crop in 2022 and 2023, pushing up prices of the staple and prompting the world's No. 2 producer to ban exports. Even this year's crop is 6.25% lower than a government estimate of 112 million metric tons. ($1 = 83.8820 Indian rupees) Sign up here. https://www.reuters.com/world/india/indian-flour-mills-urge-govt-release-wheat-stocks-prices-surge-2024-08-21/
2024-08-21 11:06
EL TENIENTE MINE, Chile, Aug 21 (Reuters) - Chilean copper giant Codelco, under growing pressure from global clients demanding sustainable mining credentials, is trying to give itself a green makeover by investing in electric buses, cactus nurseries and recycling metal materials and tools. The state firm - the world's largest producer of the red metal, which is battling to rev up production and turn around a slide in output - has focused the drive on its flagship El Teniente mine, 75 km (47 miles) south of the capital Santiago and the world's largest underground copper mine. The drive is in part a public relations push to burnish the firm's green credentials, but that has become key with customers demanding greater traceability and sustainability of the copper used in electric cars to wind turbines. "People are increasingly insisting on this," Codelco CEO Ruben Alvarado told Reuters at the mine, citing certifications such as "The Copper Mark" that is meant to reflect mining firms' sustainable credentials. The true environmental impact is less clear, experts said. Copper mining remains highly water-intensive and waste tailings can contain heavy metals, while light pollution from mines disrupts mountainous Andean areas renowned for clear night skies. "The benefit is still marginal," said Patricia Munoz, economist at the mining engineering department of the University of Santiago, referring to the measures Codelco is taking. "But at least it's a starting point." As part of the green makeover, a fleet of some 100 electric buses, converted from diesel, brings workers from the nearby city of Rancagua. "This fleet means avoiding around 3,000 tons of CO2 annually," said Ricardo Repenning, co-founder of local company Reborn that made the buses, adding that they also helped with transportation within mine tunnels, improving air quality. Other new systems involve taking recovered metal bolts, meshes and wheels to recycle and reuse in the mine. "Clearly, economically it's a little more expensive," said Andres Music, general manager of the El Teniente mine, referring to the additional transportation costs of recycling the material. "But we believe that as long as we keep doing it, we will make our process more efficient, and we will also take care of those environmental liabilities." Codelco is also working with the government on a nursery and research center to produce native species, including under-threat local cactus plants, as well as to regenerate areas damaged by tailing dams of waste mine material. "The mandate that I now have with Codelco: to produce a million native plants," said Ivan Quiroz, head of the Mediterranean Ecosystems Research Center (CEIEM). "We want to help this recovery of tailings with different species ... and so we must start by stabilizing things so that the material doesn't run away, and add things that can grow and extract any heavy metals." Sign up here. https://www.reuters.com/sustainability/copper-giant-codelco-invests-evs-cacti-part-green-makeover-2024-08-21/
2024-08-21 11:04
Euro now 2nd best performing major currency vs USD in 2024 Could rally to $1.12 near-term, FX analysts say Gains seen limited, uncertainties still high Aug 21 (Reuters) - The euro is trading at its highest this year against the dollar, emerging as a clear winner from the recent ructions in global currency markets that have unsettled a strong dollar and halted a relentless slide in Japan's yen. Having broken decisively above the symbolic $1.10 level , the euro's more than 2.5% gain in August sets the currency up for its best month since November. Traders, distracted up until now by the yen's sudden surge after a surprise July 31 Bank of Japan rate hike and a broad-dollar pounding as expectations for U.S. interest rate cuts grow, are paying attention. After all, history shows $1.10 is not an easy level to crack and as recently as April, some analysts speculated the euro could weaken to parity. It's now the second best performing major currency versus the dollar this year after sterling, and is at its highest in trade-weighted terms on record, though that is also down to weakness in emerging market currencies. The gains on the dollar, forecast to be modest from here, are nevertheless notable as U.S. Federal Reserve rate cut talk coincides with speculation that further European Central Bank easing could be limited by sticky service-sector inflation. "It's a rate differential story," said Commerzbank currency analyst Volkmar Baur. "Inflation is coming down on both sides (of the Atlantic), but the Fed is expected to move a little bit more aggressively on the way down, and that closes the rate spreads a little bit and gives way for a stronger euro." The ECB, which cut rates in June, could deliver at least two more 25 basis points reductions, market pricing suggests. In contrast, traders see 94 bps of Fed cuts across its three remaining meetings this year -- implying three 25 bps moves, with a good chance of one larger one. That's a change of around 30 bps from early August; ECB pricing has moved much less. This shift followed weak U.S. labour market data, which sparked recession fears and jolted stocks and bonds. Markets have since calmed, but policy easing expectations remain. For sure, it's not just the euro that has strengthened against the dollar in August, but the single currency is where there are the fewest complications for traders looking for a relatively safe FX bet. The yen is volatile after the unwind of a massive carry trade. Sterling has gained less in August after a UK rate cut and French political risks, that hurt the euro in June, have eased. "We've seen some risks taken out from the euro like the French election," said Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International. "It's now becoming a cleaner central bank story." GETTING HARDER From here however, the euro may struggle to make further headway. It's at the top of recent trading ranges and there's less scope for rate differentials to shift further in its favour, said analysts. Commerzbank forecasts the euro at $1.11 by year-end, unchanged from current levels. ING sees it at $1.12 in a month before falling back to $1.10 and BofA expects $1.12 by year-end. "My view since the second quarter of 2023 was to play the trading range. You buy the euro at $1.05 and sell when it moves above $1.10," said Mathieu Savary, chief European investment strategist at BCA Research. For some, this could even be it for the gains. "These are the strongest levels for the euro you should expect between now and the end of the year," said Guy Stear, head of developed markets strategy at the Amundi Investment Institute, who reckons the case for further ECB cuts was more convincing than for the Fed. A recent euro zone economic rebound shows signs of slowing, while a gauge of German investor morale posted its strongest decline in two years in August. In contrast, the next round of U.S. jobs data could show July's weak report was just a Hurricane Beryl driven blip. Another complicating factor in the mix is the Nov. 5 U.S. presidential election. While there are many moving parts, analysts said Republican candidateDonald Trump's policies of higher tariffs and lower taxes would likely cause higher inflation, meaning tighter Fed policy and a stronger dollar. Rabobank's head of currency strategy Jane Foley noted the euro's recent rise came as his Democratic rival, U.S. Vice President Kamala Harris, gained in the opinion polls. "What could really push euro/dollar above $1.10 and hold it there is a Harris victory and a U.S. slowdown," she said. Sign up here. https://www.reuters.com/markets/currencies/euro-now-safer-bet-emerges-winner-market-turmoil-2024-08-21/
2024-08-21 10:55
LONDON, Aug 21 (Reuters) - The pound steadied on Wednesday near the one-year high it touched against the dollar the previous day, with the U.S. currency under pressure from rising expectations of Federal Reserve interest rate cuts. Sterling was little changed on Wednesday at $1.3025, having touched its highest versus the dollar since July 2023 on Tuesday at $1.3054. The pound was also steady against the euro , with one euro trading for 85.37 pence. A fall in the dollar has been driving currency markets in recent days, as investors increasingly bet that the Fed will cut interest rates relatively sharply this year. U.S. bond yields slid on Tuesday as markets positioned for rate cuts, making Treasuries look less attractive and causing the dollar index to sag to its lowest level this year. "The fact that (sterling) has moved against the U.S. dollar this week is a function largely of the dollar weakness," said Jane Foley, head of FX strategy at Rabobank. Yet Foley said the pound remains the best performing G10 currency this year - up about 2.3% against the dollar - and has benefited from the stability of a new government as well as better-than-expected economic growth. Data last week showed Britain's economy recorded a second quarter of strong growth as it recovered from last year's shallow recession. Investors on Wednesday were waiting for revisions to U.S. labour market data that could cause swings in global markets. The Bureau of Labor Statistics will release revised figures for non-farm payroll numbers from April 2023 to March 2024 later on Wednesday, using tax data. A weak non-farm payrolls report on Aug. 2 helped cause a sell-off in global stocks and a rally in bonds as investors worried about the U.s. economy, so a downward revision may reignite those concerns. Fed Chair Jerome Powell is due to speak on Friday at the closely watched Jackson Hole conference in Wyoming, in another potentially market-moving event. The pound showed little reaction to data on Wednesday which showed Britain's government again borrowed more than expected last month, highlighting the difficult fiscal backdrop for new finance minister Rachel Reeves. British public sector net borrowing was 3.101 billion pounds ($4.04 billion) last month, the biggest July total since 2021. Sign up here. https://www.reuters.com/markets/currencies/pound-hovers-near-one-year-high-dollar-sags-2024-08-21/
2024-08-21 10:55
CARACAS/MARACAY, Venezuela, Aug 21 (Reuters) - Over a hundred employees at Venezuela's state oil company PDVSA, plus others in the oil ministry and parts of the public sector, have been forced to resign over their political views since last month's disputed election, workers and unions said. The government says President Nicolas Maduro won a third term in the July 28 contest, but the opposition says partial vote tallies indicate its candidate Edmundo Gonzalez won a resounding victory. Top PDVSA executives have instructed administrative and operational workers to attend rallies backing Maduro and supervised their social media accounts, according to four company sources and a union leader. Employees who have not supported Maduro or have disputed the official voting results are being pushed out, they said. "They call you to human resources, sit you down, and give you a resignation letter you must sign," a source familiar with the situation said. Venezuela's oil ministry and PDVSA did not immediately reply to requests for comment. The situation could further exacerbate a chronic staffing issue at PDVSA, where a lack of qualified workers has hit many aspects of the company's operations. Its oil output has declined to a fraction of what it was a decade ago. At PDVSA's headquarters in Caracas, about 100 administrative employees have been pushed out since the election, according to two of the sources. Over 30 others at PDVSA's Eastern division, in charge of most of Venezuela's crude output, have been made to resign, the country's largest oil union said in a statement over the weekend. "This is political retaliation against numerous workers who in the most recent electoral process have shown themselves against Maduro," union leader Jose Bodas said in the statement. PDVSA has some 90,000 employees, according to figures given this year by its CEO, Pedro Tellechea. Other public offices have employed a similar crackdown, including several ministries, state power company Corpoelec, state industrial conglomerates and petrochemical firm Pequiven, Caracas' subway system, and public media, according to Bodas, other unions and sources from those entities. At least eight employees from the oil ministry have been pushed out for political reasons, a source close to the matter said. Reuters could not immediately ascertain the total number of public employees who have left their jobs in the three weeks since the election. "They make an argument about the smallest things, social media status, a message in your profile, a quote against the government. They take a screenshot and pass it to human resources," said a refinery employee, who asked not to be identified due to fear of retaliation. Western countries and international bodies including the United Nations have called on Venezuela's government to release a full tally of last month's votes and stop persecution after anti-Maduro protests led to 23 deaths and over 2,400 arrests. Sign up here. https://www.reuters.com/world/americas/dozens-forced-quit-venezuelas-pdvsa-over-political-views-workers-say-2024-08-21/
