Brazil, other nations agree to quadruple sustainable fuels

Brazil, India, Italy and Japan vowed Tuesday to quadruple their production and consumption of renewable fuels, hoping other countries will join the pledge during UN climate talks in November.”We hope to have a good number of signatories” by COP30, Brazilian foreign ministry official Joao Marcos Paes Leme told reporters in the capital Brasilia.”Other European countries are also interested,” he added.Paes Leme was speaking on the sidelines of a meeting of representatives from 67 countries in the run up to COP30 climate talks in the Amazon city of Belem next month.The pledge involves quadrupling the production of sustainable fuels such as biofuels, hydrogen and some synthetic fuels by 2035, compared to 2024 levels.Paes Leme noted that these fuels can be used to replace planet-harming fossil fuels in sectors such as aviation, maritime transport, or the cement and steel industries.”These are sectors where decarbonization is difficult,” because electrical energy has not yet succeeded in replacing fossil fuels.Sustainable fuels are already used in these industries “but they are not produced in sufficient quantities,” he said.The massive use of coal, oil, and fossil gas for energy since the industrial revolution is the primary driver of human-induced global warming.The commitment to sustainable fuels “is something we love to hear,” said Francesco La Camera, director-general of the International Renewable Energy Agency (IRENA). However, he warned that some biofuels can be harmful due to the vast expanses of land required to produce raw materials such as sugarcane, soy, or corn. “We have to be serious about what we say: sustainable fuel also means sustainable from the perspective of land use.”For the first time, the world pledged to “transition away” from fossil fuels at COP28 in Dubai in 2023.However many of the largest fossil-fuel producing nations — including Brazil — are planning to increase production in the coming years.

Brazil, other nations agree to quadruple sustainable fuels

Brazil, India, Italy and Japan vowed Tuesday to quadruple their production and consumption of renewable fuels, hoping other countries will join the pledge during UN climate talks in November.”We hope to have a good number of signatories” by COP30, Brazilian foreign ministry official Joao Marcos Paes Leme told reporters in the capital Brasilia.”Other European countries are also interested,” he added.Paes Leme was speaking on the sidelines of a meeting of representatives from 67 countries in the run up to COP30 climate talks in the Amazon city of Belem next month.The pledge involves quadrupling the production of sustainable fuels such as biofuels, hydrogen and some synthetic fuels by 2035, compared to 2024 levels.Paes Leme noted that these fuels can be used to replace planet-harming fossil fuels in sectors such as aviation, maritime transport, or the cement and steel industries.”These are sectors where decarbonization is difficult,” because electrical energy has not yet succeeded in replacing fossil fuels.Sustainable fuels are already used in these industries “but they are not produced in sufficient quantities,” he said.The massive use of coal, oil, and fossil gas for energy since the industrial revolution is the primary driver of human-induced global warming.The commitment to sustainable fuels “is something we love to hear,” said Francesco La Camera, director-general of the International Renewable Energy Agency (IRENA). However, he warned that some biofuels can be harmful due to the vast expanses of land required to produce raw materials such as sugarcane, soy, or corn. “We have to be serious about what we say: sustainable fuel also means sustainable from the perspective of land use.”For the first time, the world pledged to “transition away” from fossil fuels at COP28 in Dubai in 2023.However many of the largest fossil-fuel producing nations — including Brazil — are planning to increase production in the coming years.

Wall Street hésite, entre tensions commerciales et baisses des taux

La Bourse de New York a terminé sans direction claire mardi, jonglant entre le retour des tensions commerciales sino-américaines et la perspective d’une poursuite de l’assouplissement monétaire de la banque centrale américaine (Fed).Le Dow Jones a pris 0,44%, l’indice Nasdaq a perdu 0,76% et l’indice élargi S&P 500 a reculé de 0,16%.”Nous avons commencé la journée sur une note négative, en raison de la situation commerciale” entre les États-Unis et la Chine, explique auprès de l’AFP Peter Cardillo, de Spartan Capital Securities.La Chine s’est dite mardi prête à se battre “jusqu’au bout” sur les droits de douane, tout en déclarant rester ouverte à la discussion avec les Etats-Unis.Le géant asiatique impose depuis mardi des droits spéciaux aux bateaux américains entrant dans ses ports, en représailles, dit-il, à des mesures similaires censées entrer en vigueur le même jour aux Etats-Unis contre les bateaux chinois.Mais, plus tard dans la séance, “les perspectives d’assouplissement monétaire, associées à un ton accommodant” de la part du président de la Fed Jerome Powell “ont favorisé un (…) rebond des actions”, indique Jose Torres, d’Interactive Brokers.M. Powell est apparu mardi préoccupé par l’atonie du marché du travail aux Etats-Unis, deux semaines avant une réunion à l’issue de laquelle une baisse des taux d’intérêt est attendue.Un assouplissement monétaire est de nature à donner de l’élan à l’activité économique et aux bénéfices des entreprises.Sur le marché obligataire, fermé la veille, le rendement à échéance dix ans des emprunts de l’Etat américain évoluait vers 20H20 GMT au même niveau qu’à la clôture vendredi, à 4,03%.Côté entreprises, les performances trimestrielles des banques –qui marquent le coup d’envoi de la saison des résultats– “se sont révélées très bonnes”, observe M. Cardillo.JPMorgan Chase (-1,93% à 302,03 dollars) a publié de meilleurs résultats qu’attendu au troisième trimestre, bénéficiant d’un essor de ses activités de gestion d’actifs et de banque d’affaires. Le chiffre d’affaires a progressé de 9% sur un an à 46,43 milliards de dollars.Le groupe a toutefois souligné un “degré plus élevé d’incertitudes” géopolitiques et des “signes de ramollissement” économique aux Etats-Unis.La banque d’affaires Goldman Sachs (-1,99% à 771,14 dollars) a aussi fait mieux qu’escompté grâce à la bonne dynamique de ses activités de conseil et aux commissions dans la banque d’investissement.Les banques Wells Fargo (+7,17%) et Citigroup (+3,86%) ont, elles aussi, dépassé les attentes du marché et ont été recherchées par les investisseurs.Certaines capitalisations géantes ont montré des signes de faiblesse, notent les analystes de Briefing.com.Le mastodonte des semiconducteurs Nvidia a par exemple lâché 4,41% à 180,01 dollars, tandis qu’Amazon a perdu 1,67% à 216,39 dollars.Le laboratoire pharmaceutique Johnson & Johnson a terminé proche de l’équilibre (-0,05% à 190,80 dollars) après avoir revu ses prévisions à la hausse. Le groupe prévoit par ailleurs de séparer son unité orthopédique en une entreprise distincte.L’avionneur Boeing a reculé de 0,54% à 214,40 dollars après avoir annoncé l’obtention de plusieurs contrats pluriannuels –d’une valeur totale de 2,7 milliards de dollars– pour la livraison de plus de 3.000 batteries antimissiles Patriot PAC-3 jusqu’en 2030.

Trump threatens to end cooking oil purchases from China

US President Donald Trump slammed China’s halt of American soybean purchases as an “economically hostile act,” warning Tuesday that his country could in turn stop buying cooking oil from the world’s second-biggest economy.”We are considering terminating business with China having to do with Cooking Oil, and other elements of Trade, as retribution,” Trump said on his Truth Social platform.His comments online, however, came shortly after he appeared to soothe rising temperatures between Washington and Beijing.”We have a fair relationship with China, and I think it’ll be fine. And if it’s not, that’s okay too,” Trump told reporters at the White House.Trade tensions between the world’s two biggest economies have reignited in Trump’s second presidency, with tit-for-tat duties reaching triple-digit levels at one point.In an interview with the Financial Times on Monday, US Treasury Secretary Scott Bessent slammed Beijing, accusing it of seeking to harm the global economy following China’s sweeping new export controls in the strategic field of rare earths.Trump, in turn, maintained that Washington has “to be careful with China.””I have a great relationship with President Xi (Jinping), but sometimes it gets testy, because China likes to take advantage of people,” Trump said. “Where the punches are thrown, you got to put up the blocks.”On Truth Social, Trump stressed that China’s halt in purchases was causing difficulty for US soybean farmers.US imports of animal fats, greases and processed oils, including those used cooking oil, have skyrocketed in recent years — driven by rising domestic production of biomass-based diesel, according to government data.- China tariff threat -While tensions between Washington and Beijing have de-escalated from their peak, the truce remains shaky.After Beijing imposed fresh controls on the export of rare earth technologies and items, Trump said he would roll out an additional 100-percent tariff on the country’s goods from November 1.And US Trade Representative Jamieson Greer told CNBC separately that this timeline could be accelerated.”A lot depends on what the Chinese do,” Greer said in the interview, adding that Beijing had “chosen to make this major escalation.”China is the world’s leading producer of the minerals used to make magnets crucial to the auto, electronic and defense industries.Bessent told the Financial Times: “This is a sign of how weak their economy is, and they want to pull everybody else down with them.”Last week, Trump also threatened to scrap a planned meeting with Xi at the Asia-Pacific Economic Cooperation (APEC) summit starting later this month.China over the weekend accused the United States of “double standards” after Trump’s threat of further tariffs. On Tuesday, China said it was ready to “fight to the end” in a trade war with the United States.

Strong dealmaking boosts profits at US banking giants

Robust dealmaking activity and strong trading results helped boost US bank earnings Tuesday despite lingering worries about a softening job market and a potentially overvalued stock market.Profits rose in the third quarter at JPMorgan Chase and three other US lending giants, reflecting strength in core business areas and the still-healthy condition of many consumers even after a lengthy stretch of persistently high costs that have stretched low-income households.At JPMorgan, profits were $14.4 billion, up 12 percent from the year-ago level, with revenues of $46.4 billion, up 9 percent.The bank, the biggest US lender in terms of assets, reported somewhat higher credit costs in the quarter as it disclosed details about a $170 million hit from the bankruptcy of Tricolor, a subprime auto lender. But JPMorgan executives reiterated that consumers remain generally “resilient” and mostly on time with credit card payments, a tone echoed by other large banks. “We’ve been waiting for the so-called consumer recession, but it doesn’t materialize,” said investment banker and author Christopher Whalen of Whalen Global Advisors.The large banks “don’t do business with subprime” customers, said Whalen, who suspects more troubles involving banks’ corporate lending will surface in time. – Stock market ‘frothiness’ -More bank earnings will be released in the coming days, but Tuesday’s batch showed increases all around with Citigroup profits rising 16 percent to $3.8 billion, Goldman Sachs up 39 percent to $3.9 billion and Wells Fargo up 9 percent to $5.6 billion.Goldman Sachs pointed to its role as the “exclusive advisor” to Electronic Arts in a $55 billion deal to go private as it confidently described its merger and acquisition “pipeline” of pending and future deals. Other banks also touted strong demand for financial advisory service. But they expressed concern about weakening US job data.”While there have been some signs of a softening, particularly in job growth, the US economy generally remained resilient,” said JPMorgan chief executive Jamie Dimon.”However, there continues to be a heightened degree of uncertainty,” said Dimon, pointing to tariffs, the risk of “sticky” inflation and other factors.Executives also acknowledged concerns that sky-high equity valuations for artificial intelligence companies may be out of hand.Citigroup Chief Financial Officer Mark Mason said the stream of stock market records suggests “some frothiness in different sectors,” adding, “we’ll have to see how that ultimately evolves.”- Problem loans limited so far -Heading into the results, one overhang facing the sector was the question of exposure to a pair of recent high-profile bankruptcies.Accounts of the collapse of Texas-based Tricolor have pointed to “apparent or alleged fraud,” JPMorgan Chief Financial Officer Jeremy Barnum said on a conference call with reporters. Barnum said it can be difficult to avert all cases where a “motivated party” is committed to deception, but that the firm was looking at fortifying its controls.”This is not our finest moment,” added Dimon, who said colleagues would “scour every issue” in light of the revelations on the case.Citigroup also disclosed what it called “idiosyncratic downgrades” that more than doubled its corporate non-accrual loans compared with last year.Mason said Citi had not experienced broad problems within its portfolio, noting the bank was not exposed to Tricolor or to First Brands, a US auto supply firm whose bankruptcy has hit some other lenders, including UBS and Jefferies.”There’s no particular concentration of exposure that I’m worried about,” he said.While the damage from such examples has been limited so far, more cases of problem corporate lending could surface. Whalen said the financial system is still flush from a period of great liquidity due to central bank actions.”There’s been so much credit available,” he said. “It’s just that they haven’t gotten to the point where they’re cleaning house.”

Strong dealmaking boosts profits at US banking giants

Robust dealmaking activity and strong trading results helped boost US bank earnings Tuesday despite lingering worries about a softening job market and a potentially overvalued stock market.Profits rose in the third quarter at JPMorgan Chase and three other US lending giants, reflecting strength in core business areas and the still-healthy condition of many consumers even after a lengthy stretch of persistently high costs that have stretched low-income households.At JPMorgan, profits were $14.4 billion, up 12 percent from the year-ago level, with revenues of $46.4 billion, up 9 percent.The bank, the biggest US lender in terms of assets, reported somewhat higher credit costs in the quarter as it disclosed details about a $170 million hit from the bankruptcy of Tricolor, a subprime auto lender. But JPMorgan executives reiterated that consumers remain generally “resilient” and mostly on time with credit card payments, a tone echoed by other large banks. “We’ve been waiting for the so-called consumer recession, but it doesn’t materialize,” said investment banker and author Christopher Whalen of Whalen Global Advisors.The large banks “don’t do business with subprime” customers, said Whalen, who suspects more troubles involving banks’ corporate lending will surface in time. – Stock market ‘frothiness’ -More bank earnings will be released in the coming days, but Tuesday’s batch showed increases all around with Citigroup profits rising 16 percent to $3.8 billion, Goldman Sachs up 39 percent to $3.9 billion and Wells Fargo up 9 percent to $5.6 billion.Goldman Sachs pointed to its role as the “exclusive advisor” to Electronic Arts in a $55 billion deal to go private as it confidently described its merger and acquisition “pipeline” of pending and future deals. Other banks also touted strong demand for financial advisory service. But they expressed concern about weakening US job data.”While there have been some signs of a softening, particularly in job growth, the US economy generally remained resilient,” said JPMorgan chief executive Jamie Dimon.”However, there continues to be a heightened degree of uncertainty,” said Dimon, pointing to tariffs, the risk of “sticky” inflation and other factors.Executives also acknowledged concerns that sky-high equity valuations for artificial intelligence companies may be out of hand.Citigroup Chief Financial Officer Mark Mason said the stream of stock market records suggests “some frothiness in different sectors,” adding, “we’ll have to see how that ultimately evolves.”- Problem loans limited so far -Heading into the results, one overhang facing the sector was the question of exposure to a pair of recent high-profile bankruptcies.Accounts of the collapse of Texas-based Tricolor have pointed to “apparent or alleged fraud,” JPMorgan Chief Financial Officer Jeremy Barnum said on a conference call with reporters. Barnum said it can be difficult to avert all cases where a “motivated party” is committed to deception, but that the firm was looking at fortifying its controls.”This is not our finest moment,” added Dimon, who said colleagues would “scour every issue” in light of the revelations on the case.Citigroup also disclosed what it called “idiosyncratic downgrades” that more than doubled its corporate non-accrual loans compared with last year.Mason said Citi had not experienced broad problems within its portfolio, noting the bank was not exposed to Tricolor or to First Brands, a US auto supply firm whose bankruptcy has hit some other lenders, including UBS and Jefferies.”There’s no particular concentration of exposure that I’m worried about,” he said.While the damage from such examples has been limited so far, more cases of problem corporate lending could surface. Whalen said the financial system is still flush from a period of great liquidity due to central bank actions.”There’s been so much credit available,” he said. “It’s just that they haven’t gotten to the point where they’re cleaning house.”

Trump fait dépendre l’aide à l’Argentine de la survie politique de Milei

“S’il ne gagne pas, nous partons”: Donald Trump a menacé mardi de couper les vivres à l’Argentine si son allié, le président ultralibéral Javier Milei, était défait lors des élections législatives à la fin du mois.”Je soutiens cet homme parce que sa philosophie est la bonne”, a dit le président américain pendant une visite de son homologue argentin à la Maison Blanche.”Je pense qu’il va gagner”, a encore dit le dirigeant républicain en référence au scrutin du 26 octobre en Argentine, en assénant: “S’il gagne nous restons avec lui et s’il ne gagne pas, nous partons.””Nos soutiens sont d’une certaine manière liés à qui remporte l’élection”, a aussi déclaré le président américain.Le message est on ne peut plus clair, alors que les Etats-Unis viennent de donner une bouffée d’oxygène à la troisième économie d’Amérique latine, malmenée sur les marchés financiers.Le Trésor américain a annoncé jeudi un échange bilatéral de devises, dit “swap”, pour 20 milliards de dollars, et une intervention directe sur le marché des changes, pour acheter et soutenir un peso sous pression, soulageant ainsi les réserves de la Banque centrale argentine.L’annonce chiffrée est intervenue alors même que les Etats-Unis commencent à sentir les effets d’une paralysie budgétaire qui entre dans sa troisième semaine, en raison d’un blocage parlementaire qui ne semble pas près de se dénouer.Elle contraste aussi avec la décision du gouvernement Trump de tailler massivement dans l’aide internationale au nom de la doctrine “America First” (“l’Amérique d’abord”). Cette approche diplomatique s’avère en effet compatible avec le soutien de gouvernements étrangers jugés idéologiquement proches de Donald Trump.- Peso -Le coup de pouce de la première puissance mondiale a soutenu le peso argentin, qui avait dégringolé la semaine dernière.Vers 19H20 GMT, le peso lâchait 0,54% face au dollar, à 1.356 pesos pour un dollar. Il a perdu 23% depuis le début de l’année, bien qu’il ait légèrement atténué ses pertes depuis un mois du fait du coup de pouce de Washington. Le soutien américain intervient à un moment critique pour le dirigeant argentin. Le 26 octobre, il fera face à des élections législatives de mi-mandat indécises, qui vont déterminer sa marge de manœuvre parlementaire et sa capacité à gouverner pour ses deux ans restants de présidence. L’incertitude liée au scrutin – et au maintien ou non du cap d’austérité de Javier Milei – avait mis l’économie argentine à la merci de turbulences financières ces dernières semaines.”Les Etats-Unis ont perçu cette attaque contre l’Argentine, contre les idées de liberté, contre un allié stratégique, et c’est pourquoi ils nous ont apporté leur soutien”, a estimé M. Milei lundi.Pour l’économiste et ancien président de la Banque centrale Martin Redrado, il s’agit purement “d’une assistance financière, une nouvelle passerelle”, venant après l’aide du FMI en avril (prêt de 20 milliards).”Mais l’Argentine ne peut pas aller de passerelle en passerelle”, estime-t-il, d’où l’importance, après l’élection, “d’armer un programme législatif s’attaquant aux problèmes de production et d’emploi”, dans un pays à plus de 40% d’emploi informel, et où le formel ne croit plus depuis 2011.- Bolivie -Au-delà de l’Argentine, le président américain s’est félicité de voir un certain nombre de pays d’Amérique latine se rapprocher des Etats-Unis.”Il y a tellement de pays qui viennent vers nous”, s’est-il réjoui.Le chef de la diplomatie américaine Marco Rubio a abondé dans son sens, en parlant de “8 ou 9, 10 pays, l’Argentine en tête, qui se sont alignés sur les Etats-Unis sur un sujet après l’autre lors d’événements internationaux”. Il a mentionné spécifiquement le Costa Rica et le Salvador.Le ministre, qui participait à la réunion avec le président argentin, a jugé que “l’une des évolutions les plus prometteuses” selon lui était la tenue dimanche d’une élection présidentielle en Bolivie. Elle verra s’affronter deux candidats de droite, après 20 ans de gouvernements de gauche dans le pays.Donald Trump et Javie Milei n’ont pas évoqué devant la presse de possibles contreparties à l’aide américaine.Javier Milei a nié à plusieurs reprises que les Etats-Unis aient demandé la fin de l’accord d’échange de devises existant déjà entre l’Argentine et la Chine, et renouvelé en 2024.L’ambassade de Chine en Argentine a elle averti ce week-end que les Etats-Unis “devaient comprendre que l’Amérique latine et les Caraïbes n’étaient le jardin de personne”.

Trump warns of Argentina aid cut if Milei loses election

US President Donald Trump warned Tuesday he could sever struggling Argentina’s financial lifeline if his libertarian ally Javier Milei loses crucial legislative elections later this month.”If he loses, we are not going to be generous with Argentina,” Trump said as firebrand Milei visited the White House to seek the Republican’s political and economic support.”I’m with this man because his philosophy is correct. And he may win and he may not win — I think he’s going to win. And if he wins we are staying with him, and if he doesn’t win we are gone.”Trump’s administration has already promised $20 billion to prop up Argentina’s struggling economy but his backing has failed to calm the markets — or help Milei’s polling ahead of midterms on October 26.The results of the elections, in which Milei’s minority party is hoping to boost its seat tally, will dictate whether Milei can pass tough cost-cutting reforms or will face a legislative brick wall for the next two years of his term.  Hailing Milei as a “great leader,” Trump said he would “fully endorse” his ideological ally in the elections.”He’s MAGA all the way, it’s ‘Make Argentina Great Again,'” Trump said, referring to his own “Make America Great Again” slogan.Trump has however faced questions about how a big bailout for Argentina tallies with that same America First policy.Asked by reporters what the benefit to the United States was, Trump replied: “We are helping a great philosophy take over a great country. We want to see it succeed.”- ‘Acute illiquidity’ -With Argentina struggling to stave off yet another financial crisis and Milei’s disapproval ratings rising, the chainsaw-wielding leader has come to right-wing ally Trump for help. Trump has repeatedly voiced political support for Milei, while backing it up with a promise of huge economic aid, but the markets remain spooked by Argentina. In recent weeks, highly indebted Argentina has had to spend more than a billion US dollars to defend the peso, a strategy most economists believe is unsustainable.  That prompted Milei’s allies in Washington to step in with a financial bailout. “Argentina faces a moment of acute illiquidity,” US Treasury Scott Bessent said last week, announcing a deal that would give Argentina access to US$20 billion. “The US Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets.”  The announcement sparked a rally in Argentine bonds and stocks and helped ease pressure on the peso.  It also marked a rare instance of direct US intervention in Latin American currency markets, underscoring Washington’s strategic interest in Milei’s success. “The United States saw this attack on Argentina, on the ideas of freedom, on a strategic ally — and that’s why they supported us,” Milei said in a radio interview Monday. “They know we are a true ally,” Milei said, referring to Argentina’s alignment with US and Israeli interests. In Argentina, there has been fevered speculation about what Trump might want from Milei in return for his support. Before Milei took power, Argentina — a major lithium producer — had been deepening ties with China. The Argentine president’s office said the leaders would discuss “multiple topics.” On Sunday, Economy Minister Luis Caputo ruled out immediate plans to dollarize the economy or alter the floating exchange rate band, amid speculation of post-election changes.