2024-11-12 12:55

Azerbaijan president: we should not be blamed for fossil fuels Tensions underline anxiety over slow progress Development banks announce climate finance US wildfires, Spanish floods a reminder of high stakes BAKU, Nov 12 (Reuters) - The president of Azerbaijan, host of this year's U.N. climate summit, lashed out at Western critics of his country's oil and gas industry on Tuesday. In his keynote address at the COP29 climate summit, where nearly 200 nations are negotiating global action on climate change, President Ilham Aliyev described his country as a victim of a "well-orchestrated campaign of slander and blackmail". Within moments, U.N. Secretary General Antonio Guterres took to the stage to say that doubling down on fossil fuels was an absurd strategy. The opposing views underscored the challenge at the heart of the climate negotiations: while nations are urged to shift to green energy sources, many, including wealthy Western nations, continue to rely on fossil fuels. Azerbaijan's finance ministry said the share of oil and gas as a contribution to the economy was declining as the country diversifies. "As a president of COP29 of course, we will be a strong advocate for green transition, and we are doing it. But at the same time, we must be realistic," said Aliyev, who has labelled his country's oil and gas resources a "gift from god". "Countries should not be blamed for having them, and should not be blamed for bringing these resources to the market, because the market needs them. The people need them." He singled out the United States, the world's largest historic carbon emitter, and the European Union for particular criticism, accusing them of double standards. The United States is the world's largest oil and gas producer. European countries, meanwhile, have some of the world's strictest targets to cut emissions by 2030 - but have also secured new gas supplies following Russia's 2022 full-scale invasion of Ukraine. Observers of the COP29 negotiations were divided on how to take Aliyev's speech. Some said it did not bode well for a strong result from the two-week summit. "Using a climate conference to promote the continued production and use of fossil fuels is ... provocative, and deeply disrespectful to the countries on the frontline of climate impacts," said Romain Ioualalen, global policy lead at campaign group Oil Change International. The tension also reflected mistrust between rich and developing countries, many of which say the wealthiest have not done enough to solve a problem that they created. "Developed countries have not only neglected their historical duty to reduce emissions, they are doubling down on fossil-fuel-driven growth," said climate activist Harjeet Singh. U.S. national climate adviser Ali Zaidi brushed off Aliyev's remarks, saying if every country decarbonised at the pace of the United States, the world would meet its climate targets. Aiming to cut methane emissions from the United States, President Joe Biden's administration on Tuesday finalised a methane fee for big oil and gas producers. But the measure is likely to be scrapped by incoming president Donald Trump. The EU declined to comment on Aliyev's speech, while a Dutch appeals court on Tuesday issued a landmark climate ruling that favoured Shell (SHEL.L) , opens new tab and dismissed an earlier order for the oil and gas company to sharply reduce emissions. PAY UP This year's summit is meant to focus on raising hundreds of billions of dollars in climate finance to help fund the switch to clean energy and adaptation to a warmer world. "The world must pay up, or humanity will pay the price," Guterres told the summit. "We are in the final countdown to limit global temperature rise to 1.5 degrees Celsius (2.7 degrees Fahrenheit), and time is not on our side." Development lenders such as the World Bank, which have been among the biggest sources of climate finance for poorer countries, are under pressure to provide more money. On Tuesday a group of 10 of the largest announced a joint goal of increasing finance to low- and middle-income countries to $120 billion by 2030, a roughly 60% increase on the amount provided in 2023. That funding is also meant to attract more private financing, by lowering the risk associated with climate-linked investments. For the rest of the two-week summit, governments will be discussing what else they can add to that annual funding target. With this year on track to be the hottest on record, scientists say global warming and its impacts are unfolding faster than expected. Even as leaders traded barbs in Azerbaijan, climate-fuelled wildfires forced evacuations in California and triggered air quality warnings in New York. In Spain, survivors are coming to terms with the worst floods in the country's modern history. "These extreme weather events that the world is facing daily suggest that humanity and the planet are hurtling towards catastrophe," Barbados Prime Minister Mia Mottley said. "Every COP must make progress, irrespective of the geopolitical dynamics." Sign up here. https://www.reuters.com/business/environment/cop29-pay-up-or-face-climate-led-disaster-humanity-warns-un-chief-2024-11-12/

2024-11-12 12:39

LONDON, Nov 12 (Reuters) - Former Credit Suisse bond trader Hamza Lemssouguer's main $3.7 billion fund at Arini jumped 23.4% through the end of October, benefiting from bets against European manufacturers facing U.S. and China headwinds, said a source and an investor letter. The year-to-date gains beat recent industry averages for hedge funds trading corporate debt, which have returned 9% over the same period, and distressed players, which are up an average of 11.5%, according to hedge fund research firm PivotalPath. The Arini Credit Master Fund made short bets centered on how electric vehicles and satellite companies in Europe will likely be squeezed between increasing U.S. protectionist measures and China's ability to mass-produce at low costs, according to a September letter sent to investors and seen by Reuters. The fund, which takes both long and short bets on the value of bonds as well as options bets aimed at protecting and profiting from macro-economic swings, has yet to send its October update. A short position takes the view that an asset will weaken in price. Bonds issued by companies in the satellite industry traded lower in September with some falling as much as 10% on news that Elon Musk's Starlink won two major contracts with United Airlines and Air France, according to the September letter. Starlink's European competitors are facing a powerful challenger whose CEO is expected to benefit from the backing of U.S. President-elect Donald Trump. "We remain concerned at the level of debt the legacy geostationary satellite companies are carrying into a period where they need to defend market share despite an inferior product and higher pricing," the letter said, also pointing to a "swath of profit warnings" from European auto companies during September. Waning European consumer demand, fading government stimulus, 'cratering' used electric vehicle prices and high labour costs will all pose further detriments to the industry, it said. Europe's weakness, despite any fiscal easing it might employ, will continue to stem from having to pay for commodities which are primarily priced in U.S. dollars. The dollar has gained since Trump secured election victory last week, particularly against the euro, which has fallen almost 3% to touch a 7-month low around $1.0617 on Tuesday . Arini, which oversees $6.7 billion, had returned 7.8% in its $375 million Arini Structured Credit Equity Fund by end-October, according to a person with knowledge of the matter who declined to be named because the details are private. Arini was originally spun off from Squarepoint but is now fully independent. It trades the high-yield and distressed debt of global companies but concentrates on its European expertise guided by London-based founder Lemssouguer who started the hedge fund in January 2022. A spokesperson for Arini declined to comment. Sign up here. https://www.reuters.com/markets/europe/bond-hedge-fund-arini-up-234-betting-against-european-satellites-autos-says-2024-11-12/

2024-11-12 12:36

Nov 12 (Reuters) - Tyson Foods (TSN.N) , opens new tab forecast full-year revenue below Wall Street expectations on Tuesday, pressured by slowing chicken demand and lower pork prices. The company is losing market share to cheaper private-label products as more and more consumers shy away from its meat-based products, which are usually more expensive. Sales in Tyson's chicken segment rose 2.3% in the fourth quarter, while prices were up 0.2% and volumes dropped 0.7%. Tyson's pork segment saw volumes increase 3.2%, while prices fell 6.9%. The company expects fiscal 2025 revenue to be between flat and down 1%. Analysts had expected 1.8% growth to $54.09 billion, according to data compiled by LSEG. However, volume in the beef segment rose 3.7%, hinting to strong demand at a time when U.S. meat packers including Tyson Foods are facing short supply of beef, with no signs showing that producers are willing to start to rebuild herds. Tyson Foods' net sales rose 1.6% to $13.57 billion in the fourth quarter, compared with the average analyst estimate of $13.39 billion. The company's shares rose nearly 6% in premarket trading. Sign up here. https://www.reuters.com/business/retail-consumer/tyson-foods-forecasts-downbeat-annual-revenue-lower-pork-prices-slowing-chicken-2024-11-12/

2024-11-12 12:03

Nov 12 (Reuters) - Cryptocurrency data provider Kaiko said on Tuesday it is acquiring European crypto index provider Vinter in a bet on growth in the European digital asset market. The deal comes as some analysts expect significant growth in the European crypto ETP market, which remains significantly smaller than the U.S. "It's a clear bet on the European ETP market...," said Ambre Soubiran, CEO of Kaiko. Vinter, which supplies digital asset indices and reference rates for several Europe-listed ETPs, including those from 21Shares and Sygnum Bank, marks Kaiko's third acquisition to date. Digital asset investment products listed in Germany, Sweden and Switzerland collectively manage approximately $13.64 billion in assets, according to data from CoinShares. In contrast, U.S. products have an AUM of about $88.78 billion. Kaiko plans to expand its product offerings to provide independent data for asset managers, derivatives traders, and exchanges following the acquisition. The cash and equity deal values Kaiko at $200 million post-acquisition, though the company did not disclose the Vinter deal value. The acquisition follows recent industry moves, including Bitwise Asset Management's purchase of European crypto ETP issuer ETC Group in August, and trading platform Robinhood Markets' (HOOD.O) , opens new tab agreement to acquire European exchange Bitstamp for $200 million in June. The cryptocurrency market has surged on expectations that digital currencies will boom in a favorable regulatory environment following the election of Donald Trump as U.S. president and of pro-crypto candidates to Congress, with bitcoin nearing the $90,000 mark. "Trump's victory is seen as a very good sign for crypto," Soubiran said, adding Kaiko also plans to also target the American crypto market "more aggressively." Sign up here. https://www.reuters.com/markets/deals/cryptocurrency-data-provider-kaiko-acquires-vinter-eyes-european-crypto-etp-2024-11-12/

2024-11-12 11:56

BAKU, Nov 12 (Reuters) - Prime Minister Keir Starmer said Britain would cut greenhouse gas emissions by 81% by 2035 as he committed the country to a more ambitious climate goal at the United Nations COP29 climate summit. The new goal is in line with a recommendation from a committee of climate advisers who said last month the target should exceed the current 78% cut to emissions, measured against 1990 levels. "At this COP, I was pleased to announce that we're building on our reputation as a climate leader, with the UK's 2035 NDC (nationally determined contributions) target to reduce all greenhouse gas emissions by at least 81% on 1990 levels," Starmer told a press conference at the climate gathering in Baku, Azerbaijan. Starmer said the British public would not be burdened because of the new target, which excludes international aviation and shipping emissions. "What we're not going to do, is start telling people how to live their lives. We're not going to start dictating to people what they do," he said. Sign up here. https://www.reuters.com/sustainability/cop-29-uks-starmer-sets-out-new-2035-climate-goal-2024-11-12/

2024-11-12 11:52

Nov 12 (Reuters) - Indian Oil Corp (IOC.NS) , opens new tab expects to complete expansion of its refineries in Panipat, Gujarat and Barauni by December of next year, said sources familiar with the information on Tuesday. "We see all three refinery expansions converging by December 2025," one of the source said, adding that the crisis in Ukraine and COVID pandemic were primary reasons for the delays. India's top refiner was expanding the capacity of its Barauni refinery in the state of Bihar from 6.0 million tonnes per annum to 9 million tonnes at an estimated cost 160 billion rupees ($1.90 billion) and there is a 10% cost overrun, the sources added. The state-run refiner is expanding the Panipat Refinery from 15 MMTPA to 25 MMTPA and the Gujarat Refinery from 13.7 MMTPA to 18 MMTPA along with its integration to lube and petrochemical production units. The refinery expansions come as India aims to raise its refinery capacity to as much as 450 MTPA, from about 249 MTPA, or about 5 million barrels per day (bpd), currently. The Gujarat refinery expansion was initially scheduled for completion by mid-2024, while the Panipat expansion has also been delayed by over a year. IOC last year approved the cost increase in the Panipat refinery expansion to about 362.25 billion rupees from the original plan of about 330 billion rupees. The refiner plans to shut down its hydrocracker and some secondary units at the Gujarat refinery for revamp by this fiscal year-end, and the gasoline-making unit at the Barauni refinery by the irst to second quarter of the next fiscal year, sources said. ($1 = 84.3570 Indian rupees) Sign up here. https://www.reuters.com/world/india/indian-oil-aims-finish-expansion-panipat-gujarat-barauni-refineries-by-dec-2025-2024-11-12/