From end-December, the EU Deforestation Regulation will require importers to prove their products weren’t made with raw materials from deforested land by, amongst other measures, tracing the materials back to the plot they were grown on

International News via Reuters:

The EU’s new anti-deforestation law will push many coffee firms to ensure all their products meet the bloc’s rules, not just those destined specifically for EU markets, according to a study by the non-profit Trase.

From end-December, the EU Deforestation Regulation will require importers to prove their products weren’t made with raw materials from deforested land by, amongst other measures, tracing the materials back to the plot they were grown on.

For coffee producers that ship most, but not all, of their coffee to the EU, Trase found it would often be less costly to extend EUDR-compliance across their entire supply chain, rather than running segregated EU and non-EU chains.

• The EU accounts for about 40% of global coffee imports, but according to Trase, firms that supply the bloc handle nearly 80% of the world’s coffee shipments.

• Coffee major JDE Peet’s ships 84% of its beans to the EU, while trading firms Louis Dreyfus and Neumann Gruppe ship 63% and 53%, respectively.

• “For such companies, extending traceability requirements across their supply (chains) may be most cost effective. This means the deforestation law could punch far above the EU’s weight,” said Trase.

• The EUDR has long faced criticism it will lead to segregated supply chains that cut small-scale farmers in remote, rural areas out of the lucrative EU market, with exporters loath to ship their beans to the bloc as they will have to trace them.

• The Trase study calls into question this critique.

• “The fact that many companies ship to both the EU and other markets suggests similar standards may be more easily adopted by those companies beyond the EU,” it said.

• Deforestation is the second leading cause of climate change after the burning of fossil fuels. The EUDR aims to end the 10% of global deforestation fuelled by EU imports.

Reporting by May Angel; Editing by Jan Harvey

Amanda Blanc, BP’s senior independent director, who oversaw Manifold’s and Tyler’s appointments, will not seek re-election at next year’s annual general meeting and will step down once a successor for her has been found

International News via Reuters:

BP has appointed Ian Tyler, former CEO of building group Balfour Beatty, as its permanent chair, it said on Wednesday, after it fired Albert Manifold in May, citing governance and conduct concerns.

Amanda Blanc, BP’s senior independent director, who oversaw Manifold’s and Tyler’s appointments, will not seek re-election at next year’s annual general meeting and will step down once a successor for her has been found, BP said.

Manifold’s surprise dismissal, less than eight months after he took office to help oversee efforts to refocus BP on its oil and gas business, followed years of management churn at BP.

The company’s share price dropped by 0.6% by 0828 GMT, versus a 0.2% fall for the wider European energy sector. Year-to-date, BP shares have gained 25%, in line with gains for shares in Shell. The U.S.-Israeli war on Iran has boosted profits for oil majors, especially for those with large trading desks such as the two British groups.

Tyler, who also chairs building materials firm Grafton Group and is senior independent director for mining company Anglo American, joined BP’s board last year and had replaced Manifold on an interim basis in May.

“I will lead the board’s evolution, ensuring we have the depth, experience and capabilities needed to support the company’s strategic priorities and long-term value creation,” Tyler said in a statement.

He also said he would establish “regular and transparent engagement” with shareholders.

“Given the significance of the role, Ian will review his existing board commitments to ensure that he can devote the appropriate time and attention to the company,” BP said.

BP’S FIVE STRATEGIC PRIORITIES

BP CEO Meg O’Neill, who took over the role in April and is the fifth CEO since 2020, outlined last month five priorities for BP: further strengthening the balance sheet, simplifying the portfolio, tightening investment discipline, improving operational performance, and creating structures that enable faster decision-making and greater accountability.

The group aims to increase profitability and analysts expect BP to hit its net debt reduction target of $14 billion to $18 billion ahead of its end-2027 target.

Manifold has said he disputed BP’s version of events, which did not go into detail about the company’s conduct and governance concerns, and that he would not let this “false narrative” go unchallenged.

Four sources with knowledge of the matter said at the time of Manifold’s dismissal in May he had acted aggressively with different colleagues across the company, citing that as one reason for his firing.

Manifold hired law firm Mishcon de Reya to represent him after his ouster, a source familiar with the situation told Reuters in May. Representatives for Manifold declined to comment on Wednesday.

Reporting by Shadia Nasralla and Stephanie Kelly in London, additional reporting by Yadarisa Shabong in Bengaluru; Editing by Nivedita Bhattacharjee, Sharon Singleton, Louise Heavens and Barbara Lewis

U.S. President Donald Trump has repeatedly sought to acquire the semi-autonomous Danish island, citing national security concerns and accusing Copenhagen of neglecting Arctic defence

International News via Reuters:

For the first time in recent history, Danish conscripts have been deployed to Greenland, as Denmark moves to bolster its presence in the Arctic after U.S. demands to acquire the territory.

U.S. President Donald Trump has repeatedly sought to acquire the semi-autonomous Danish island, citing national security concerns and accusing Copenhagen of neglecting Arctic defence. Denmark and Greenland have firmly rejected the idea.

The conscripts are part of the first cohort under Denmark’s new extended conscription programme, aimed at producing soldiers able to operate in one of the kingdom’s most strategically important and challenging regions.

“It shows presence that we’re here and not just thinking of our own skin. And also thinking of the people in Greenland,” 19-year-old conscript David told Reuters.

Copenhagen has pledged billions of dollars to strengthen Arctic defences after Denmark’s defence minister acknowledged years of underinvestment in the region.

“Of course, we are a part of a bigger picture of the strategic communication about Greenland, but our role here is just to continue the training of the conscripts, the soldiers, and get more experience with the training in the Arctic terrain and climate,” company commander Captain Laura Jepsen said.

The conscripts are taking part in Arctic Endurance, a Danish military exercise that trains soldiers for combat and survival in extreme cold-weather conditions.

The drill forms part of Arctic Sentry, a NATO mission launched this year to strengthen the alliance’s Arctic presence and ease tensions within NATO after Trump’s remarks about Greenland.

Russia, which maintains the Arctic’s largest military footprint, has criticised NATO’s growing activity in the region, describing it as a direct security threat that increases the risk of confrontation.

China has increased its activity in the mineral-rich region, mostly in partnership with Moscow.

Training north of the Arctic Circle, the conscripts moved through a landscape of bare rock and open expanses with no trees in sight.

“I think it sends a message that Denmark is reinforcing itself for the future,” Anton, 22, one of the conscripts, said.

($1 = 6.4472 Danish crowns)

Reporting by Tim Barsoe in Kangerlussuaq, writing by Stine Jacobsen, editing by Ros Russell

The U.S. struck Iranian military targets near the Strait of Hormuz, while Tehran said it had targeted U.S. assets across the region, marking the most significant exchange of fire since July

International News via Reuters:

World stocks fell on Wednesday as fresh U.S. airstrikes on Iran pushed oil prices to five-week highs, stoking inflation concerns and extending a global bond selloff.

The U.S. struck Iranian military targets near the Strait of Hormuz, while Tehran said it had targeted U.S. assets across the region, marking the most significant exchange of fire since July.

Fears of further disruption to energy supplies lifted oil prices, with Brent crude futures last up 0.6% at $95.18 a barrel. [O/R]

Wall Street futures pointed to another weak start after hitting one-month lows in the prior session. The pan-European STOXX 600 fell 0.3%, after sharper losses in Asia. South Korea’s KOSPI dropped almost 4%, while the Nikkei 225 was down 2.9%.

“The recent increase in energy prices has put additional upward pressure on bond yields, which had already been on the rise on the back of some fiscal concerns,” said Kiran Ganesh, multi-asset strategist at UBS Global Wealth Management.

“Stocks had been quite resilient to the increase in yields but at some point the faster rate of increase does start to put some pressure on equity markets.”

The yield on the benchmark U.S. 10-year Treasury bond rose to near a three-year high of 4.8182%, while the yield on the 10-year Japanese government bond held above 3% for a second straight session after hitting a three-decade high earlier this week.

The rise in borrowing costs across major economies deepened concerns about tighter monetary policy and deteriorating fiscal dynamics.

The U.S. dollar index, which measures the greenback against a basket of six currencies, was up 0.1% at 99.734, near its highest since August 17. It was also supported by rising bets for a U.S. interest rate hike.

Rising yields and escalating geopolitical tensions underpinned the U.S. dollar’s safe haven appeal, while reducing demand for equities and other riskier investments.

“With the market already pricing quite a hawkish outlook for the Fed, we think there’s much more scope for downward surprises for the dollar than there is for some of the other currencies,” Ganesh said.

DATA-DEPENDENT

The escalation in the Middle East and the global bond selloff have given September a shaky start, adding to pressure on markets days after hawkish comments from Federal Reserve Chair Kevin Warsh prompted investors to increase bets on a U.S. interest rate hike.

Traders now assign a roughly two-in-three chance that the Fed will deliver a 25-basis-point rate increase this month, up from 37% a week ago, according to CME Group’s FedWatch tool.

Ahead of the Fed’s September 16 meeting, investors are looking to upcoming U.S. economic data for clues on whether the economy remains strong enough to justify monetary policy tightening. ADP private payrolls data is due on Wednesday, the nonfarm payrolls report on Friday and the consumer inflation report on September 11.

Elsewhere, policy meetings from the European Central Bank and the Bank of Japan will also be closely watched as markets gauge how far major central banks are prepared to tighten policy in response to persistent inflation risks.

“September looks set to test just how far central banks are willing to go to keep inflation risks in check,” said Matthew Ryan, head of market strategy at financial services firm Ebury.

Gold was down 0.1% at $4,322.24 an ounce, while bitcoin edged 0.6% lower to $76,951.01 and ether was off 1% at $2,394.57.

Reporting by Gregor Stuart Hunter in Singapore and Medha Singh in Bengaluru. Editing by Tom Hogue, Mark Potter and Gareth Jones

Brent crude futures rose 11 cents, or 0.12%, to $94.76 a barrel by 0949 GMT and U.S. West Texas Intermediate crude futures were up 1 cent, or 0.04%, to $90.26

International News via Reuters:

Oil prices were little changed on Wednesday after climbing to more than one-month highs earlier in the session as traders weighed the risk of supply disruptions following overnight U.S. and Iranian strikes against signs that crude supplies continue to reach the market.

Brent crude futures rose 11 cents, or 0.12%, to $94.76 a barrel by 0949 GMT and U.S. West Texas Intermediate crude futures were up 1 cent, or 0.04%, to $90.26.

Brent crude and U.S. West Texas Intermediate crude earlier climbed to their highest levels since July 24, reaching session highs of $97.04 and $92.29 a barrel, respectively.

“The market is facing a binary risk,” said Saxo Bank head of commodity strategy Ole Hansen.

“An announcement that a deal has been reached, or that progress is being made, could send prices tumbling, while any escalation would further undermine the prospect of a peace deal. That’s why oil remains highly volatile, with a potential $5 move in either direction on fresh developments.”

The U.S. and Iran were back on a war footing on Wednesday after the most significant exchange of fire in weeks, with Washington threatening more devastating strikes.

The Islamic Revolutionary Guard Corps said the U.S. attacks would further restrict traffic through the Strait of Hormuz, a critical waterway that carried about one-fifth of the global oil consumed before the conflict and which Iran has effectively closed to commercial shipping.

Two oil tankers hit sea mines and were disabled while attempting to transit the Strait of Hormuz, Iran’s Revolutionary Guards said on Wednesday, in a statement shared by state media.

“Ship-to-ship transfers in recent weeks has meant that some oil has continued to be exported through the Strait of Hormuz, alleviating some of the pressure on the oil market. However, these flows are at high risk of being disrupted by military strikes,” said Hamad Hussain, senior climate and commodities economist at Capital Economics.

U.S. Secretary of Energy Chris Wright said on Tuesday that 17 million barrels of oil transited the Strait of Hormuz on Monday, saying it marked the highest level of crude oil to pass through the waterway since the Iran war had reduced flows.

“If the conflict escalates further and there is even greater disruption to shipping in the Middle East, Brent crude prices could feasibly rise beyond $100,” Hussain added.

Elsewhere, Russia carried out a “massive” missile and drone attack on energy infrastructure in Ukraine’s southern region of Odesa overnight, transmission system operator Ukrenergo said on Wednesday.

Reporting by Siddharth Cavale, Trixie Yap and Anushree Mukherjee; Editing by Muralikumar Anantharaman, Jamie Freed, Alexandra Hudson