2024-04-10 13:03
GENEVA, April 10 (Reuters) - Global goods trade should rebound this year, but more slowly than previously expected, after only its third decline in 30 years in 2023, the World Trade Organization said on Wednesday. The Geneva-based trade body said easing inflationary pressures should help the volume of merchandise trade increase by 2.6% in 2024 and by 3.3% in 2025, after a 1.2% decline last year. The WTO had previously forecast a 3.3% rise in 2024. At the same time, the WTO warned of risks from trade fragmentation due to geopolitical tensions, rising protectionism and a worsening Middle East crisis in which attacks on commercial ships in the Red Sea have already diverted trade between Europe and Asia. Before last year, global trade had only fallen in two years since the WTO was formed in 1995. Global trade fell 5% during the pandemic in 2020 and more than 12% during the global financial crisis of 2009. In 2023, import demand was particularly weak in Europe, where the impact of higher energy prices and inflation was most intense. The WTO said risks to its 2024 forecast were skewed to the downside, with its forecast range from minus 1.6% to plus 5.8%. In a sign of rising geopolitical tensions in the past days, U.S. Treasury Secretary Janet Yellen warned China that Washington will not accept new industries being decimated and the European Union opened a new front against Beijing with an investigation into Chinese wind turbine makers. WTO Chief Economist Ralph Ossa said there was evidence of trade fragmentation, but not deglobalisation, with trade growth continuing but at a rate slower than in the 1990s. The WTO has previously estimated a full decoupling of the world into geopolitical blocks could reduce global GDP by 5%. On the Red Sea, through which 12% of global trade normally passes, the WTO said shipping had reduced but not halted and maritime freight rates were contained. Ossa said the situation needed to be closely monitored, adding the risk of oil price spikes from an escalation of the Middle East crisis would probably be more significant than Suez Canal disruption itself. "As soon as energy prices are affected significantly, then of course we feel repercussions on international trade," he said. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/global-trade-recover-steadily-after-rare-fall-2023-wto-says-2024-04-10/
2024-04-10 13:00
FRANKFURT, April 10 (Reuters) - Germany's Baltic Sea import terminal for liquefied natural gas (LNG) at Mukran on Ruegen island has received its operating permit under federal and state laws, private operating company Deutsche ReGas said on Wednesday. "Deutsche ReGas is making an even greater contribution to the secure supply of gas to eastern Germany, its eastern European neighbours and the industrial locations in southwest Germany," it said in a press release. Approvals for the regasification terminal were received under federal pollution laws and water laws in the state of Mecklenburg-Vorpommern, it said. Germany has intensified its quest to increase LNG capacity for regasification on its shores since Russia's invasion of Ukraine prompted European countries seek to reduce their heavy reliance on Russian gas. The terminal, called Deutsche Ostsee, has capacity of up to 13.5 billion cubic metres (bcm) of gas per year to be received by floating storage and regasification units (FSRUs) and to be fed into onshore gas transport networks. Germany last year consumed 83.2 bcm of gas for industry and heating. Wintershall Dea (WINT.UL) and SEFE subsidiary Gascade, a gas pipeline operator, completed the 50km Ostsee-Anbindungsleitung (OAL) link in February to hook up Mukran with onshore grids, coinciding with the arrival of the Energos Power FSRU. The Mukran project has triggered local opposition from environmental groups that say that wildlife and tourism could suffer from the new infrastructure and that there is sufficient gas import capacity elsewhere. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. https://www.reuters.com/business/energy/germanys-mukran-lng-terminal-receives-operating-permit-2024-04-10/
2024-04-10 12:50
MOSCOW, April 10 (Reuters) - Russian Deputy Prime Minister Alexander Novak met heads of local oil companies on Wednesday, instructing them to maximiae gasoline and diesel supply to the domestic market, according to a statement posted on the government's Telegram channel. The statement added that the energy ministry said that supplies on the Russian fuel market remain stable. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/commodities/russian-oil-companies-told-boost-fuel-supply-domestic-market-2024-04-10/
2024-04-10 12:33
BRUSSELS, April 10 (Reuters) - The 2023 wildfire season in the Europe was among the worst this century, according to a European Commission report published on Wednesday. Last year, more than half a million (504,002) hectares, an area twice the size of Luxembourg, was scorched by wildfires, according to a report on Forest Fires in Europe, Middle East and North Africa 2023 by the Commission's Joint Research Centre. The three worst years this century by the extent of burnt area mapped by the European Forest Fire Information System (EFFIS) were 2017 (988,427 ha), 2022 (837,212 ha) and 2007 (588,388 ha). The report shows that fires intensified during summer 2023, affecting mostly the Mediterranean region, with Greece (near Alexandroupoli) suffering the largest single fire to occur in Europe since the 1980s. Climate change is making wildfires more frequent, and wildfires are increasingly affecting areas that have not been considered fire-prone in the past, the report said. It added that things are likely to get worse, according to the European Climate Risk assessment report published in March. Preliminary data for the first three months of 2024 show almost double the average number of fires, although these did not have major impact in terms of burnt areas. According to the report, the wildfires produced some 20 megatonnes of CO2 emissions, equivalent to nearly a third of all emissions from international aviation in the EU in one year. The final 2023 report, integrating national contributions, is due to be published in the autumn. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/europe/europes-wildfires-2023-were-among-worst-this-century-report-says-2024-04-10/
2024-04-10 12:29
MADRID, April 10 (Reuters) - Zara owner Inditex (ITX.MC) New Tab, opens new tab demanded more transparency from a certifier that vets some of the cotton used by the Spanish fashion giant following an investigation that found evidence of malpractice by two Brazilian certified cotton producers. Inditex sent a letter dated April 8 to Better Cotton CEO Alan McClay asking for clarity on the certification process and progress on traceability practices after the NGO Earthsight informed the retailer that producers with Better Cotton certifications were involved in land grabbing, illegal deforestation and violent acts against local communities, according to a copy of the letter seen by Reuters. Inditex said it had waited more than six months for the results of an internal investigation by Better Cotton that was promised for the end of March and began in August 2023, according to the letter. The allegations "represent a serious breach in the trust placed in Better Cotton's certification process by both our group and our product suppliers," Inditex said in the letter. "The trust that we place in such processes developed by independent organisations, such as yours, is key to our supply chain control strategy." The contents of the letter was first published by Modaes, a fashion business news site. Inditex confirmed to Reuters it had sent the letter. Inditex does not purchase cotton directly but its providers are audited by certifiers such as Better Cotton to ensure good practices when obtaining their raw materials. Geneva-based Better Cotton, one of the world's largest certifiers of sustainable practices in the cotton industry, told Reuters it would provide more information in the coming weeks once it had analysed the results of the audit it had commissioned. Better Cotton said in an April 4 statement that it would not publish its findings until it had seen the full NGO Earthsight report, which was due to be published on Thursday. Better Cotton said its strategic partner in Brazil, the Brazilian Association of Cotton Producers, was revising elements of its standards to align with those of Better Cotton. Created by companies and several nonprofits including the World Wildlife Fund, Better Cotton says it aims to support improved practices in areas like water and soil stewardship and to promote better working standards. Fashion retailers face increasing pressures from consumers and activist groups to sell products with less environmental impact and made in safe labour conditions. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/business/retail-consumer/zara-owner-inditex-demands-clarity-cotton-certifier-accused-standard-breaches-2024-04-10/
2024-04-10 12:23
LONDON, April 10 (Reuters) - The high concentration in crypto trading on a handful of exchanges, with Binance alone accounting for about half the market, raises concerns about the impact of a failure on the sector, the EU's securities watchdog said on Wednesday. The bloc is rolling out the world's first comprehensive set of rules to regulate trading in cryptoassets such as bitcoin , Ether and Tether, requiring exchanges to be authorised. The European Securities and Markets Authority's detailed analysis New Tab, opens new tab of what's being traded and by whom found that so far the euro currency plays only a minor role. Trading volumes are highly concentrated, with 10 exchanges processing about 90% of trades, and the largest, Binance, accounting for about half the market. "While this might be advantageous from an efficiency standpoint due to economies of scale, it raises considerable concerns regarding the implications of a failure or malfunction at a major asset or exchange for the wider crypto ecosystem," ESMA said. "We observe that the market concentration among exchanges has increased over time, and that Binance alone accounts for more than 50% of trading volume." Binance said in a statement that it believes that the healthy and sustainable growth of the crypto industry is a key responsibility for the company and other players in the market. "Our focus continues to be on... continuing to invest in compliance processes for a new era of regulatory certainty," Binance said. Bitcoin hit an all-time high of $73,803.25 in March, but the total value of all cryptocurrencies - $2.7 trillion, according to CoinGecko - still represents a tiny fraction of the global financial system. ESMA said identifying the origin of order flow or the geographic location of crypto exchanges remains problematic, with about 55% of current global trading volumes executed on exchanges that hold an EU licence. Most transactions occur outside the bloc at exchanges domiciled in tax havens, ESMA said. "Contrary to the frequent claim that crypto assets could represent a safe haven in times of wider market stress, we find a certain co-movement with equities and no stable relationship with gold," ESMA said. ESMA will hold a webinar on April 25 to discuss its findings. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. https://www.reuters.com/markets/currencies/crypto-trading-concentration-considerable-concern-says-eu-watchdog-2024-04-10/
