2023-12-09 10:47

Some members balk at fossil fuel phase-out inclusion Saudi Arabia and Russia push for focus on emissions, not fuels Nations most affected by climate change demand its inclusion DUBAI, Dec 9 (Reuters) - Countries clashed on Saturday over a possible agreement to phase-out fossil fuels at the COP28 summit in Dubai, jeopardising attempts to deliver a first-ever commitment to eventually end the use of oil and gas in 30 years of global warming talks. Saudi Arabia and Russia were among several countries insisting that the conference in Dubai focus only on reducing climate pollution - and not on targeting the fossil fuels causing it, according to observers in the negotiations. On the other side, at least 80 countries including the United States, the European Union and many poor, climate-vulnerable nations are demanding that a COP28 deal call clearly for an eventual end to fossil fuel use. COP28 President Sultan al-Jaber told nations late on Saturday to speed up their work to find a final deal, saying there were "still more areas of divergence than agreement". "The window is closing to close the gaps," he told the summit. OPEC Secretary General Haitham Al Ghais earlier said in comments read out to the summit delegates by an official: "We need realistic approaches to tackle emissions. One that enables economic growth, helps eradicate poverty and increases resilience at the same time." Earlier this week, the oil producer group sent a letter urging its members and allies to reject any mention of fossil fuels in the final summit deal, warning that "undue and disproportionate pressure against fossil fuels may reach a tipping point". It was the first time OPEC's Secretariat has intervened in the U.N. climate talks with such a letter, according to Alden Meyer of the E3G climate change think tank. "It indicates a whiff of panic," he said. EU climate commissioner Wopke Hoekstra criticised the letter as "out of whack" with climate efforts. "By many, including by me, that has been seen as out of whack, as unhelpful, as not in tune with where the world stands in terms of the very dramatic situation of our climate," he said. Saudi Arabia is the top producer in OPEC and the de facto leader of the organization and Russia is a member of the so-called OPEC+ group. By insisting on focusing on emissions rather than fossil fuels, the two countries appeared to be leaning on the promise of expensive carbon capture technology, which the U.N. climate science panel says cannot take the place of reducing fossil fuel use worldwide. Other countries including India and China have not explicitly endorsed a fossil fuel phase-out at COP28, but have backed a popular call for boosting renewable energy. China's top climate envoy, Xie Zhenhue, described this year's climate summit as the hardest in his career. "I have participated in these climate negotiations for 16 years," he told journalists. "The hardest meeting is this year's. There are so many issues to settle." He said there was little chance the summit would be called a success if nations could not agree to language on the future of fossil fuels. India's environment minister, Bhupender Yadav, demanded "equity and justice" in any deal, holding that rich countries should be leading global climate action. Broader diplomatic grievances were also aired at the podium on Saturday, clouding the focus on global warming. A Russia representative said in a speech that Moscow was looking into whether some of the roughly $300 billion in gold reserves frozen by the West after Russia invaded Ukraine could be used for a climate damage fund for developing countries. Meanwhile, China complained about what it said was unacceptable talk about Taiwan's participation in the talks. And a Palestinian representative denounced Israel's war in Gaza, saying the conflict made it difficult to focus on climate change efforts. 'CRITICAL STAGE' With the summit's scheduled to end on Tuesday, government ministers from the nearly 200 countries at the Dubai summit have joined in trying to resolve the fossil fuel impasse. Climate-vulnerable countries said a rejection of a fossil fuel mention at COP28 would threaten the entire world. "Nothing puts the prosperity and future of all people on earth, including all of the citizens of OPEC countries, at greater risk than fossil fuels," said Marshall Islands climate envoy Tina Stege in a statement. The Marshall Islands, which faces inundation from climate-driven sea level rise, currently chairs the High Ambition Coalition group of nations pushing for stronger emissions-cutting targets and policies. To meet the global goal of holding climate warming to within 1.5 degrees Celsius above preindustrial temperatures, the coalition "is pushing for a phase out of fossil fuels, which are at the root of this crisis," she said. "1.5 is not negotiable, and that means an end to fossil fuels." The latest version of the negotiating text, released Friday, shows countries were still considering a range of options - from agreeing to a "phase out of fossil fuels in line with best available science", to phasing out "unabated fossil fuels", to including no mention at all. Germany's climate envoy Jennifer Morgan said counties were "moving into the critical stage of negotiations". "It is time for all countries to remember what is at stake," she said. "I am concerned that not all are constructively engaging." Asked about the OPEC letter, COP28 Director General Majid Al Suwaidi avoided the term "fossil fuels" but said the United Arab Emirates, as president of the summit, wanted a deal to get the world on track to limit warming to 1.5 C. "Our COP president ... clearly wants to see an outcome that is as ambitious as possible, and we believe we are going to deliver it," he told a news conference. Speaking on behalf of the Alliance of Small Island States, Samoa's environment minister, Cedric Schuster, worried that this year's talks were getting bogged down by disputes. "We are extremely concerned about the pace of negotiations given the limited time we have left here in Dubai," he told the summit from the main stage on Saturday. "A target for renewables cannot be a substitute for a stronger commitment to fossil fuel phase-out and an end to fossil fuel subsidies," he said. "COP28 needs to deliver both." Azerbaijan looks set to host next year's COP29 climate change summit after winning backing from other Eastern European nations, unblocking a geopolitical deadlock over the next global gathering to address climate change. For daily comprehensive coverage on COP28 in your inbox, sign up for the Reuters Sustainable Switch newsletter here. https://www.reuters.com/business/environment/opec-members-push-against-including-fossil-fuels-phase-out-cop28-deal-2023-12-09/

2023-12-09 09:02

HONG KONG, Dec 9 (Reuters) - Hong Kong authorities have ordered the culling of more than 900 pigs after detecting the presence of the deadly African swine fever (ASF) in animals at a licensed farm in the New Territories district. The Agriculture, Fisheries and Conservation Department (AFCD) said 19 of 30 pigs tested had swine fever and that transportation of pigs from the farm had been immediately suspended. The culling will start early next week, it said. "AFCD staff has arranged to inspect the other eight pig farms within three kilometres (two miles) of the index farm and will collect samples for ASF testing," it said in a statement. "Pork cooked thoroughly is safe for consumption. Members of the public do not need to be concerned." Though often fatal to pigs and with no vaccine available, ASF does not affect humans, according to the U.N. Food and Agriculture Organisation. https://www.reuters.com/world/asia-pacific/hong-kong-cull-900-pigs-amid-outbreak-deadly-swine-fever-2023-12-09/

2023-12-09 02:06

Dec 8 (Reuters) - New York-based stock exchange Nasdaq Inc (NDAQ.O) agreed to pay a $4 million settlement to the U.S. Department of Treasury over apparent violations of sanctions against Iran by a former Nasdaq unit, the department's Office of Foreign Assets Control (OFAC) said on Friday. Nasdaq OMX Armenia provided services to Iran and Iran's state-owned Bank Mellat, it said. "The settlement amount reflects OFAC's determination that Nasdaq's conduct was non-egregious and voluntarily self-disclosed," OFAC said. Nasdaq said in an emailed statement that the settlement acknowledged mitigating factors, including Nasdaq's voluntary disclosure of the transactions in 2014 and its sale of the Armenian subsidiary in 2018. Nasdaq acquired the Armenian Stock Exchange, subsequently renamed Nasdaq OMX Armenia, when it acquired Swedish financial company OMX AB in February 2008. https://www.reuters.com/business/finance/nasdaq-pay-4-mln-settlement-over-apparent-iran-sanctions-violations-2023-12-09/

2023-12-09 00:16

Consumer sentiment picks up in December U.S. job growth beats estimates in November Honeywell slips after buyout deal for Carrier unit Indexes: S&P 500 +0.41%, Nasdaq +0.45%, Dow +0.36% Dec 8 (Reuters) - U.S. stocks closed higher on Friday, with the S&P 500 and Nasdaq notching their highest closing levels since early 2022 after a robust U.S. jobs report fueled investor optimism about a soft landing for the economy. Investors pared bets that the Federal Reserve will cut interest rates in March after a Labor Department report showed nonfarm payrolls increased by 199,000 jobs in November, compared with an estimated increase of 180,000. The unemployment rate slipped to 3.7%, while average earnings edged up to 0.4% on a monthly basis, compared with forecasts of 0.3% growth. Interest rate futures show traders widely expect the Federal Reserve to hold interest rates steady at its meeting next week, according to the CME FedWatch tool. However, futures prices now imply traders mostly expect the Fed to start cutting rates in May, two months later than the March meeting many investors had been betting on in recent days. "The drop in the unemployment rate in particular will assuage any concerns of a recession, and with payrolls and earnings both rising, it keeps the ‘soft landing’ narrative very much in the ascendancy," said Stuart Cole, head macro economist at Equiti Capital in London. "The report will likely see some of those forecasting an early Fed cut next year re-evaluating their positions," Cole said. The S&P 500 climbed 0.41% to end the session at 4,604.37 points. The Nasdaq gained 0.45% to 14,403.97 points, while Dow Jones Industrial Average rose 0.36% to 36,247.87 points. The S&P 500's close was its highest since March 2022, while the Nasdaq's close was it highest since April 2022. For the week, the S&P 500 rose 0.21%, the sixth time in a row it has logged a weekly gain, its longest streak since November 2019. The Dow edged up 0.01% for the week, also its sixth straight weekly gain, its longest run of positive weeks since February 2019. The Nasdaq gained 0.69% for the week. The S&P 500 remains down 4% from its record high close in late 2021 with the Nasdaq still down 10% from its record high then. Chipmaker Nvidia (NVDA.O) and Facebook-owner Meta Platforms (META.O) each gained nearly 2% in Friday's session. Shares of Google-parent Alphabet (GOOGL.O) dipped 1.4%, giving up gains after an AI-led rally in the previous session. Other data showed U.S. consumer sentiment perked up much more than expected in December, snapping four straight months of declines. Robust quarterly reports and optimism that the Fed has finished raising rates have fueled steady gains in the U.S. stock market since late October. Honeywell (HON.O) dipped 1.6% after the industrial firm said it would buy air conditioner maker Carrier Global's (CARR.N) security business for $4.95 billion. Carrier's shares rose almost 4%. Paramount Global (PARA.O) soared 12% after reports of takeover interest in the media company. Peer Warner Bros Discovery (WBD.O) jumped 6.6%. DocuSign (DOCU.O) rallied 4.8% after the e-signature product provider raised its annual forecast for revenue. Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX) by a 1.5-to-one ratio. The S&P 500 posted 33 new highs and no new lows; the Nasdaq recorded 104 new highs and 90 new lows. Volume on U.S. exchanges was 11.0 billion shares traded, in line with the previous 20 sessions. https://www.reuters.com/markets/us/futures-muted-investors-eye-payrolls-data-interest-rate-clues-2023-12-08/

2023-12-08 23:53

SYDNEY, Dec 9 (Reuters) - Australia's southeast on Saturday sweated through a heat wave that raised the risk of bushfires and led authorities to ban fires in large parts of New South Wales state. The nation's weather forecaster predicted a maximum temperature in Sydney, Australia's most populous city, of 40 degrees Celsius (104 degrees Fahrenheit), almost 15 degrees above the average December high for the city. At Observatory Hill in the centre of Sydney, the capital of News South Wales, the temperature was 38.9 C (102 F) at 1 p.m. (0200 GMT) on Saturday, according to forecaster data. Prime Minister Anthony Albanese said in Sydney it was "a time to ensure that we look after each other and stay safe". "Today in Sydney, and in other parts of the east coast, it's a reminder that there just might be something in this climate change stuff," Albanese said, according to a transcript. The heat heightens the risk of bushfires in an already high-risk fire season during Australia's December-February summer due to an El Nino weather event, typically associated with extremes such as wildfires, cyclones and droughts. New South Wales fire authorities said on social media platform X that a fire ban was in place for large swaths of the state, including Sydney, given "very hot, dry and windy conditions" brought by warm northwesterly winds. There were 71 grass and bushfires - 21 of them uncontained - burning across New South Wales on Saturday, the state's Rural Fire Service said. Authorities are concerned about a return of dangerous fire conditions this summer after Australia's last two fire seasons were quiet compared with the 2019-2020 "Black Summer" that destroyed an area the size of Turkey and killed 33 people. In a warning on Friday, the forecaster said "severe heat wave conditions" would continue in much of New South Wales into next week, with peak temperatures predicted for the weekend. At Sydney's Coogee Beach, head lifeguard Clive Stiff said the extreme heat meant a busy Saturday for those on patrol. "We're mostly worried about sun safety and hydration, both for members of the public and members of the Patrol of course," Stiff said. Beachgoer Carley Carr took a more relaxed view of the heat. "It's about time that we had a good summer. So we'll be down at the beach probably early and staying inside for middle of the day," Carr said. https://www.reuters.com/business/environment/australia-swelters-through-heat-wave-bushfire-risk-2023-12-08/

2023-12-08 23:26

Dec 11 (Reuters) - The last big central bank push of the year is here with the Fed, the ECB and the Bank of England among the big hitters meeting while markets try to discern whether a U.S. recession is likely or a distant prospect. China's policymakers will set direction for next year while Bitcoin enjoys a stellar rally. Here's your week ahead in financial markets from Lewis Krauskopf in New York, Kevin Buckland in Tokyo, Yoruk Bahceli in Amsterdam, and Naomi Rovnick and Elizabeth Howcroft in London. 1/ FED FIRST There's no bigger factor than the Fed for markets in their bets on when rate cuts might come, with policymakers getting one last chance this year to roil markets when the world's top central bank gives its final 2023 policy statement on Wednesday. Holding rates seems a done deal, with investors laser focused on comments from Chair Jerome Powell that could indicate when the Fed might look to cut rates after 525 basis points of increases since March 2022. Projections the Fed is poised to start lowering rates early in 2024 have helped fuel a huge rally in stocks and bonds, sending the S&P 500 to a new closing high for 2023 and pulling 10-year Treasury yields back down closer to 4%. U.S. November inflation data on Tuesday could provide a wrinkle for markets. October's consumer price index reading was unchanged, a first in more than a year. 2/ AND THEN THE REST It is not just in the U.S. that traders have ignored policymaker warnings that bets on steep rate cuts next year have gone overboard. Major central banks elsewhere are on the jam-packed agenda, with the Swiss National Bank, Norges Bank, Bank of England and European Central Bank all meeting Thursday. All but Norway are tipped to stay on hold. With markets pricing five Fed and six ECB cuts next year, focus is on how policymakers, who can't sound the all-clear on inflation just yet, grapple with the pressure. Comments from rate-setters, such as ECB hawk Isabel Schnabel, have prompted traders to double down, and they are likely to pounce on any clues central bankers are starting to come around. But if policymakers decide enough is enough and challenge markets, expect a broad sell-off. 3/ HIGH STAKES Recession roulette has been a high-stakes game since late 2021 and it's not getting easier. Forecasters at top investment banks are deeply divided between those sticking to predictions of a long-expected U.S. downturn and rapid Federal Reserve rate cuts and others recommending folding on the bet. Goldman Sachs expects the world's largest economy to decelerate without contracting, with borrowing costs staying near current levels. Deutsche Bank predicts a mild recession followed by a whopping 175 basis points of cuts that will drive the S&P 500 (.SPX) about 10% higher by late 2024. Uncertainty seems to rise despite November's red-hot rally for stocks and bonds. PMI readings due out in days to come will provide a frontline view. Outflows from equity and bond funds show investors - currently well compensated for holding cash - are stepping away from the table. Citi's risk aversion is ticking higher. 4/ ANIMAL SPIRITS China's economy is sending mixed signals about its health, just as policymakers convene for pivotal closed-door meetings to set the 2024 agenda. Government advisers have told Reuters they'll recommend a repeat of the 5% growth target, but also more stimulus to get there. Data on Saturday showed consumer prices falling the fastest in three years in November while factory-gate deflation deepened, indicating rising deflationary pressures as weak domestic demand casts doubt over the economic recovery. Measures so far have for the most part fallen short, with confidence fragile among consumers and factory managers. Beijing needs a return of animal spirits to fill the hole left by patchy property market growth. Retail sales data on Dec. 15 will provide an update, after figures out in recent days showed a surprise contraction for imports - suggesting subdued domestic demand - even as exports unexpectedly rebounded. Real estate remains the elephant in the room though, and was at the heart of a Moody's decision to cut the outlook for China's debt rating - a move reverberating through Chinese capital markets all week. 5/ BACK TO 2022 Bitcoin has been rising again. On Tuesday it hit $44,490 - its highest since April last year . In other words, it's back to levels it was at before 2022's most high-profile crypto firm collapses: TerraUSD, Three Arrows Capital, Celsius and FTX. The gains are fuelled by hopes that the United States might approve applications for a spot bitcoin ETF, analysts say, as well as investors betting on Fed rate cuts next year. But those outcomes are far from guaranteed, and JPMorgan has called the bitcoin rally "overdone". Meanwhile crypto fans don't appear worried about the U.S. Treasury warning about consequences for the industry if firms fail to block and report the flow of illicit funds. https://www.reuters.com/business/take-five/global-markets-themes-graphic-2023-12-08/