Sejourne had been expected to present long-awaited trade measures on September 23, which would have only limited exports of aluminium scrap

International News via Reuters:

The EU’s industry chief Stephane Sejourne has decided to propose a broad ban on exports of waste, including aluminium scrap, to non-OECD countries, a statement from Sejourne’s cabinet said on Friday.

Sejourne had been expected to present long-awaited trade measures on September 23, which would have only limited exports of aluminium scrap.

“In the internal discussions, it appeared that the tool proposed could only cover around a half of the scrap export. As a result, the Executive Vice-President has decided to withdraw the proposal and to explore a proposal, independent from trade instruments,” the statement said.

“We are now working on a delegated act under the Waste Shipment Regulation. This delegated act will ban exports of waste, including aluminium scrap to non-OECD countries with the exception of some EU candidate countries.”

The Paris-based Organisation for Economic Co-operation and Development (OECD), a group of mostly high-income nations, does not include China, India and other Asian countries that are major destinations for scrap metal and other EU waste.

Europe’s aluminium industry had been waiting for the Commission to impose trade restrictions, such as export duties, since the spring. In June, Reuters reported the announcement was delayed to September.

Scrap metal is a major source of feedstock for the EU’s ailing smelters and plays a ⁠vital role in the sector’s decarbonisation efforts. Recycling aluminium uses 95% less ​energy than producing metal from mined bauxite.

The proposal will first be open to public consultation before adoption by the year end, the statement added.

Reporting by Julia Payne, Editing by Louise Heavens and Aurora Ellis

The benchmark STOXX 600 ticked up 0.1% to finish at 649.88 points on Friday, capping a volatile week with an overall decline of 0.8%

International News via Reuters:

European shares ended the week lower on Friday, though a rally in Volkswagen helped steady the market after the automaker agreed on a major turnaround plan.

The benchmark STOXX 600 ticked up 0.1% to finish at 649.88 points on Friday, capping a volatile week with an overall decline of 0.8%. The weekly slide was fuelled by escalating conflict in the Middle East, which sent crude prices higher and added to investor concerns over sticky inflation, rising government debt, and prolonged central bank tightening.

A resilient U.S. non-farm payrolls report also shaped Friday’s sentiment, signalling ongoing stability in the U.S. labor market, reinforcing expectations that the Federal Reserve could raise interest rates later this month. 

Investors are now turning their attention to next week’s U.S. consumer inflation print for a clearer signal on the Fed’s trajectory.

“Fed chairman Warsh’s decision to look past labor-market softness at Jackson Hole and focus on inflation has been vindicated, and this report gives the Fed more ammunition to tighten in September,” said Eric Merlis, managing director and co-head of global markets at Citizens.  

The prospect of higher U.S. interest rates has added another layer of pressure to global equities just as European economies grapple with sluggish growth and rising energy costs.

European bourses found support late in the session as intraday oil prices eased and corporate headlines lifted investor mood.[O/R]

Leading the market higher, Volkswagen jumped 5.9% to hit a two-month high, topping Germany’s DAX index after the supervisory board of Europe’s largest automaker struck a turnaround agreement that averted an escalation with unions and shareholder Lower Saxony.

The automaker faces pressure from U.S. import tariffs, a stagnant European market as well as aggressive Chinese rivals that have all hurt its margin and hammered the stock. Despite Friday’s gain, its shares are down 22% so far this year.

“Investors have a habit of applauding major cost cutting exercises, yet there is always the risk that the respective company is cutting too close to the bone and leaves itself short of resources should demand pick up,” said Dan Coatsworth, head of markets at AJ Bell. 

Lifted by Volkswagen’s performance, the broader European autos index gained 1.1%.

Looking ahead to next week, market focus will shift to the European Central Bank’s policy meeting, where a 25-basis-point rate hike is widely anticipated. 

JPMorgan and BNP Paribas said they expect the European Central Bank to deliver another 25-basis-point rate hike in December, as elevated energy prices strengthen the case for further tightening.

Reporting by Sudeshna Ghoshal in Bengaluru; Editing by Subhranshu Sahu, Nivedita Bhattacharjee and Hugh Lawson

The EU is seeking to harmonise rules across Europe after authorities in cities including Paris, Barcelona and Venice cracked down on Airbnb

International News via Reuters:

Airbnb and other short-term home rental companies face new restrictions as the European Union seeks to tackle a shortage of affordable housing in tourism hotspots, according to a European Commission proposal seen by Reuters.

The EU is seeking to harmonise rules across Europe after authorities in cities including Paris, Barcelona and Venice cracked down on Airbnb.

Residents, especially young Europeans hit hardest by the housing crisis due to the surge in short-term holiday rentals, have also taken to the streets to protest.

European Commission Vice-President Teresa Ribera will present the Affordable Housing Act on September 9, which will then need to be debated by EU countries and European Parliament in the coming months before it can become law.

HOW TO DEFINE A HOUSING SQUEEZE

The proposal sets out criteria for determining what constitutes a housing squeeze that would justify curbs on short-term rentals.

Authorities “should assess housing stress in the area concerned on the basis of the price-to-income ratio and its growth across time together with other indicators that allow to demonstrate that housing stress is unlikely to ease in the future,” the draft said. 

“The price-to-income ratio measures the affordability of housing by comparing the cost of acquiring a dwelling with the earnings of the household or population that is expected to purchase it,” it said.

It said authorities should also assess population growth and housing supply and demand trends and that any measure should be non-discriminatory, proportionate and in the public interest.

The proposal said quantitative caps in areas facing a housing crunch or grandfathering rules, which allow those already operating to continue to abide by existing regulations, could be more appropriate than a ban on acquisitions or use of property.

Lobbying group CCIA, whose members include Airbnb, said the Commission should monitor national and local restrictions and resist disproportionate curbs.

“Without enforceable proportionality checks, the Affordable Housing Act would serve no one well, not the homeowners who let a room to help make ends meet, not the regions and industries that live from tourism,” it said in a statement. 

The Affordable Housing Act follows the EU short-term rental data regulation, which took effect in May this year and requires short-term rental companies to share data with governments across Europe so they can monitor listings and flag non-compliant ones.

Reporting by Foo Yun Chee; editing by Barbara Lewis