2024-11-12 08:12

LONDON, Nov 12 (Reuters) - The pound fell to a three-month low after data on Tuesday showed regular wage growth cooled and unemployment ticked up, and as currencies felt the pressure of a surging dollar after Donald Trump's U.S. election victory. Sterling fell as much as 0.5% to $1.2806, its lowest since Aug. 15, in early European trading. It was last down 0.44% at $1.2814. The pound also slipped against the euro, with the single currency last up 0.2% to 82.97 pence . Data on Tuesday showed British wage growth, excluding bonuses, fell in the third quarter to its lowest level in more than two years. Unemployment in September rose to 4.3%, from 4.1%, although low survey response rates have reduced the reliability of British jobs figures. "The easing in private sector regular pay suggests that the Bank of England will continue to cut interest rates gradually," said Paul Dales, chief UK economist at consultancy Capital Economics. "There is little here to suggest the Bank needs to worry that the loosening in the labour market and the easing in underlying wage growth are coming to an end." The pound was already 0.3% lower before the data arrived, however, as the dollar continued its strong run in the wake of the Nov. 5 U.S. election. President-elect Trump has floated putting tariffs of 10% to 20% on all imports and potentially levying 60% charges on Chinese goods, policies investors reckon would hurt America's European trading partners. The pound is down around 1.1% since the election but has fared better than the euro, which has slumped roughly 2.8%. Britain voted to leave the EU in 2016, leaving in 2020, and only ran a small trade in goods surplus with the United States in the middle of 2024. The euro fell to its lowest in 2-1/2 years against the pound on Monday, as investors braced for potentially painful trade measures. Trump's cabinet is taking shape and one of the names in contention for the top trade post is Robert Lighthizer, a prominent advocate of tough tariffs. The dollar index , which measures the currency against six peers, was up 0.29% at 105.73 on Tuesday. It has risen around 2% since the election. Sign up here. https://www.reuters.com/markets/currencies/pound-hits-3-month-low-jobs-data-dollars-trump-rally-2024-11-12/

2024-11-12 07:59

Appeals court dismisses 2021 ruling Friends of the Earth says will continue to fight polluters COP29 takes place in Baku to seek progress on curbing emissions AMSTERDAM, Nov 12 (Reuters) - Oil and gas major Shell (SHEL.L) , opens new tab on Tuesday won an appeal against a landmark ruling that required it to accelerate carbon reduction efforts, dealing a blow to campaigners who have turned to legal channels to pursue climate action. The appeals court in The Hague said Shell had a responsibility to reduce greenhouse gas emissions to protect people from global warming. But it dismissed the 2021 ruling that ordered Shell to cut its absolute carbon emissions by 45% by 2030 compared to 2019 levels, including those caused by the use of its products. Since then, Russia's invasion of Ukraine in 2022 that led to a spike in oil and gas prices has sharpened governments' and shareholders' focus on costs and in many cases, weakened climate ambitions. Tuesday's ruling coincides with the COP29 U.N. climate summit in Baku, Azerbaijan, where opening procedures were delayed on Monday by a dispute over how prominent the future of fossil fuels should be on the agenda. Friends of the Earth Netherlands, which brought the Dutch case in 2019, said it would continue its fight against large polluters, but did not say whether it would launch a further appeal at the Netherlands' Supreme Court. "This hurts," director Donald Pols said. "At the same time, this case has shown that large polluters are not above the law." Shell CEO Wael Sawan said Shell believed the decision was "the right one for the global energy transition, the Netherlands and our company". CLIMATE MITIGATION The case in The Hague, where Shell was headquartered until it completed its move to London in 2022, was viewed as pivotal and helped to inspire other lawsuits. In appeal hearings earlier this year, Shell said demands for companies to reduce emissions could not be made by courts, but only by states. The court agreed with Shell that an absolute order to reduce emissions from its products could have an adverse effect worldwide, as it could lead customers to switch from using Shell's gas to more polluting coal. "In general, any reduction in greenhouse gas emissions is positive to mitigate climate change," Presiding Judge Carla Joustra said. "But that does not mean that a reduction order for Shell has that same effect." Shell said it was well on track to meet the court order for its own production, where emissions were 30% below 2016 levels last year. In common with some of its peers, Shell scaled back its renewable operations, which can take longer to generate profits compared with oil and gas. However, it plans to invest $10-15 billion between 2023 and 2025 in low-carbon energy. In March, it weakened targets for the products it sells, to a 15-20% reduction in net carbon intensity by 2030 relative to 2016, while it retired a previous target to reduce its carbon intensity by 45% by 2035. Citi analysts said Tuesday's ruling was the best case outcome for Shell. "While success with the appeals court may not be the end of the legal process, by signalling that company strategy is now more firmly in the hands of shareholders, we believe it has a positive impact," Citi said. Shell shares traded down 0.6% by 1145 GMT, broadly in line with the wider sector, as analysts said the court decision had already been factored in. Sign up here. https://www.reuters.com/business/energy/shell-wins-appeal-against-landmark-dutch-climate-ruling-2024-11-12/

2024-11-12 07:52

Gold touches lowest price since Sept. 20 US dollar hits more than four-month peak Gold poised to rise with support at $2,600, analyst says US CPI data due on Wednesday Nov 12 (Reuters) - Gold prices fell to nearly a two-month low on Tuesday in the face of a stronger dollar, optimism about economic growth under a second Trump administration, and a broader market pivot following the Nov. 5 U.S. presidential election. Spot gold was down 0.7% at $2,600.93 per ounce by 2:23 p.m. EST (1923 GMT), after dropping 1% to hit its lowest level since Sept. 20 at $2,589.59 earlier in the session. U.S. gold futures GCv1 settled 0.4% lower at $2,606.30. The dollar index's (.DXY) , opens new tab rise to more than four-month high increased the cost of bullion for holders of other currencies, while bitcoin surged on continued demand from investors who see it as a play when President-elect Donald Trump takes power in January. U.S. Treasury yields also edged higher. "I think this is just a corrective move in a longer-term bullish market. The policies right now are thought to be pretty inflationary. So if we see another wave of inflation coming, then that should drive gold higher," said Daniel Pavilonis, senior market strategist at RJO Futures. Technically, the market seems to be poised for an upward move, with support around $2,600, he added. Markets are watching a heavy slate of U.S. economic data this week, including the release on Wednesday of the consumer price index for October, along with remarks from Federal Reserve Chair Powell and other U.S. central bank officials. Following the Fed's recent decision to cut its benchmark interest rate by a quarter of a percentage point to the 4.50% to 4.75% range, traders currently see a 59% chance of another rate cut in December, versus around 80% before Trump's election victory last week. Gold, buoyed by pre-election euphoria as a "Trump trade," is now dipping on growth optimism, Carsten Menke, an analyst at Julius Baer, said in a note. But a multipolar world and the "desire of emerging market central banks to be less dependent on the U.S. dollar and – in an extreme case – less susceptible to U.S. sanctions" still point to a longer-term rise in gold prices, Menke added. Spot silver rose 0.2% to $30.72, platinum lost 2% to $945.39 and palladium fell 3.5% to $946.59. Sign up here. https://www.reuters.com/markets/commodities/gold-hovers-near-1-month-low-ahead-us-data-fed-speakers-2024-11-12/

2024-11-12 07:37

SINGAPORE, Nov 12 (Reuters) - India's imports of thermal coal plunged by about a third on an annual basis in October, according to data analytics firms Bigmint and Kpler, due to slowing power generation and higher clean energy output. Shipments into the world's second-largest coal importer plunged 31.8% to 13.56 million metric tons, Bigmint data showed. This was the fastest rate of contraction in fifteen months, and the first consecutive decline since July 2023. Traders expect Indian purchases to pick up in the coming weeks, but that will not be enough to lift total annual imports above 2023 levels as shipments are expected to fall in the last two months of 2024 due to high inventories at ports. "Despite low industrial activity, traders have bought a high amount of coal into India," said Vasudev Pamnani, director at Indian coal trading firm I-energy Natural Resources Ltd, adding that thermal coal imports for the year 2024 are expected to be flat at about 176 million tonnes. Indian shipments of the fuel used mainly for power generation have been tracking the trajectory of growth in shipments by top importer China over the last year, shoring up international prices. The decline in Indian imports in October was the first major divergence between imports by India and China since mid-2023. China's imports of thermal and metallurgical coal rose 29% in October - mainly due to higher thermal coal imports - putting shipments of the fuel on track to reach another record high in 2024. While price-sensitive Indian buyers have shown a preference for cheaper domestic coal in recent months, analysts say imported coal has a price advantage over the domestic variety in China. Lower hydropower generation in China has also led to a higher dependence on coal in September, while higher hydro and solar power generation have reduced reliance on coal in India, data on Indian and Chinese government websites showed. Sign up here. https://www.reuters.com/world/india/india-thermal-coal-imports-fall-fastest-pace-15-months-2024-11-12/

2024-11-12 07:26

Nov 12 (Reuters) - Australia's Vulcan Energy Resources (VUL.AX) , opens new tab said on Tuesday it had received 100 million euros ($106.42 million) in funding from the German economy ministry for its renewable energy plant in Landau, Germany. The Vulcan HEAT4LANDAU project is for generating renewable geothermal heat to support Landau's transition to sustainable and renewable district heating, starting 2026. The project is part of Vulcan's Phase One Lionheart Project, which aims for a 24,000 metric tons of lithium hydroxide production capacity per year, strengthening Europe's green lithium supply chain. The company's Phase One Lionheart Project financing process is on track, led by BNP Paribas, with a debt structuring group including the European Investment Bank, and others. The German Recovery and Resilience Plan funding programme is one of the several grants under the German national government and European Commission initiatives for which Vulcan has applied, the company said. Shares of Vulcan Energy surged as much as 16.8% to a more than 18-month high on Tuesday, before closing up 12%. ($1 = 0.9397 euros) Sign up here. https://www.reuters.com/business/energy/australia-listed-vulcan-energy-gets-106-mln-funding-german-ministry-2024-11-12/

2024-11-12 07:04

Marijuana cultivation is illegal in Italy, but so-called "cannabis light" is allowed Italy's government now wants to limit the use of this product Growers say the plan is irrational and would wreck their industry Critics say the bill is part of an illiberal drift under Meloni Government claims the ban is necessary to end a legal grey area ROME, Nov 12 (Reuters) - Italy's flourishing "cannabis light" industry risks being uprooted this year when Prime Minister Giorgia Meloni pushes a bill through parliament to deflower a crop that is legal across much of Europe. The looming legislation is part of a broad range of measures being introduced by Meloni's arch-conservative coalition, looking to burnish its credentials as the defender of public morality and traditional social structures. While marijuana production is illegal in Italy, parliament eight years ago authorised trade in hemp, a cannabis variety which is grown for its industrial and non-psychoactive uses. Meloni's government says the 2016 law was too lax and wants to ban any product deriving from the hemp flower, infuriating local entrepreneurs who say the move could cost thousands of jobs and imperil millions of euros of investments. "It's absurd that a state which put Italian businesses to work by starting a legitimate supply chain now wants to shut it all down," said Alessio Amicone, who founded a company that grows and sells cannabis products called Canapando. "They are waging a war on a substance that is not a drug," he told Reuters. Hemp contains very low levels of tetrahydrocannabinol (THC), meaning it can't make you high unlike marijuana, which comes from a separate variety of the cannabis family. By contrast, it contains higher concentrations of cannabidiol (CBD), known for its potential therapeutic effects, such as reducing anxiety, pain, and inflammation, which mainly derives from the inflorescence -- the flowering part. But the government's anti-drug department likens products made from the flower to recreational drugs, saying in a statement they "could pose risks to public safety or road safety". As a result, it has decided to ban their sale. Producers contest this, saying the aromatic flowers have a negligible psychotropic component - one that affects how the brain works - and are a vital ingredient for their supply chain that spans food, textiles and cosmetics. The hemp lobby Federcanapa says 70%-80% of the income from hemp cultivation is derived from the flower. "Producing without the inflorescence is like saying you can only grow wheat by decapitating the ear. What sense does that make from an economic perspective?" said Stefano Masini, head of the environment unit at Italy's farming lobby Coldiretti. ILLIBERAL DRIFT The proposed flower ban is included in a broader security decree that combines an array of disparate measures, including a clampdown on demonstrations, squats and sit-ins, as well as tough new curbs on prison protests. It has already been approved by the lower house of parliament and is now before the upper house Senate. Critics say the bill is part of an illiberal drift in Italy under Meloni, who has reserved her most radical action during her two years in office on social issues, such as her recent criminalisation of surrogacy parenthood. The problem lies with the ambivalent way the original 2016 law was written, the government says. It sanctioned the sale of "cannabis light", but stipulated that it should not be smoked or eaten. The law makes no specific mention of the flowers. As a result, the flower is often packaged as a "collector item" that should not be consumed -- a ruse that fools no-one. The government wants to end this legal grey area. "The government's amendment is absolutely necessary," said Augusta Montaruli, a member of Meloni's Brothers of Italy party who has championed the bill in parliament. "If anyone was hoping to operate within legal uncertainty, that's not possible with us," she told Reuters. The government's hard line makes no sense to CBD advocates, who say the compound helps take the edge off stress, giving you a gentle buzz, without getting you stoned. "Cannabis light contains a very small amount of the active ingredient in marijuana. It has no psychotropic effect. It is used for pain relief, relaxation, and as an anxiolytic," said Andrea Crisanti, a well-known virologist and senator for the opposition Democratic Party. The decision to remove the flower from the cannabis supply chain was "shameful" and devoid of scientific logic, he said. Hemp cultivation has been approved by the European Union and it is grown across the continent, including in neighbours France and Switzerland. Germany went one step further in February by joining Malta and Luxembourg in legalising marijuana use. Raffaele Desiante, head of the Italian Hemp Entrepreneurs group, said there are some 3,000 Italian companies operating in the sector, with 10,000 full-time employees and annual turnover of around 500 million euros. Roughly 90% of the Italian product is exported, he says. The government argues that the industrial hemp supply chain need not be affected by banning the use of the flower, but those working in the sector, such as Silvio Saraceni, the owner of a cannabis light shop, says it would be economic suicide. Based in Rome's Garbatella neighbourhood, where Meloni grew up, Saraceni says flower products make up "at least" half of his sales. "We feel like we're holding our breath, unable to think about the future or investments because we are in total uncertainty," he said. Sign up here. https://www.reuters.com/world/europe/italy-plans-restrict-nascent-cannabis-light-industry-2024-11-12/