EU climate rule threatens US trade deal

Good morning and welcome again. In immediately’s publication:

• EU provide chain rule threatens US commerce deal

• Bessent dangers backlash over Argentina rescue

• Unhealthy blood over Starbucks

• Revival of gold futures buying and selling in London urged

We start with an unique story on the EU. The US and Qatar have warned the bloc that its commerce, funding and power provides shall be in danger except it eases robust new local weather and human rights laws.

Threat to progress: Washington and Doha mentioned the EU’s Company Sustainability Due Diligence Directive threatens the expansion and competitiveness of the European economy in addition to its power safety.

The 2 international locations mentioned the foundations — set for debate by EU legislators as early as Friday — would result in a discount within the quantity of liquefied pure gasoline they ship to the bloc. The LNG imports turned a lifeline for the EU after Russia’s full-scale invasion of Ukraine in 2022.

The due diligence regulation is to be phased in from 2027, when corporations shall be liable to being fined if their provide chains hurt the setting or human rights.

“This comes at a essential second when our international locations and corporations are striving not solely to maintain however to considerably enhance the dependable provide of LNG to the EU,” reads a joint letter to EU leaders signed by the US and Qatari power ministers, seen by the Monetary Instances.

Why it issues: The letter recommended that the EU guidelines may additionally injury the commerce settlement struck in July between the bloc and President Donald Trump. That deal dedicated EU states to purchasing $750bn of US power by the top of 2028. Read the full story.

• US-South Africa relations: Washington is politicising commerce talks by seeking to introduce “domestic” and sovereign points into the negotiations, Pretoria’s overseas minister says.

For extra on international commerce, join Alan Beattie’s weekly Commerce Secrets and techniques publication here in case you’re a premium subscriber, or upgrade your subscription.

Right here’s what else we’re conserving tabs on immediately:

• Financial information: The UK releases CPI and PPI inflation fee information for September.

• UK: Prime Minister Sir Keir Starmer hosts western Balkan leaders for the Berlin Course of Summit in London.

• Outcomes: Tesla, Hermès, Barclays, EQT and SAP report earnings. See our Week Forward publication for a fuller list.

5 extra high tales

1. Scott Bessent is beneath stress to justify Washington’s multibillion-dollar rescue of Argentina as criticism mounts over the Trump administration’s efforts to help President Javier Milei. Learn extra on the political backlash the US Treasury secretary is dealing with.

2. Unique: Starbucks, the world’s greatest espresso store chain, has hit the brakes on new cafés within the face of rising development prices and falling same-store gross sales. However the pullback has left some landlords within the lurch and has stained Starbucks’ image as a tenant.

3. The chair of the London Bullion Market Affiliation has referred to as for the revival of gold futures buying and selling within the UK, regardless of the failure of earlier makes an attempt to determine a derivatives contract on the planet’s $35tn-a-year bodily gold buying and selling capital. Learn extra remarks from LBMA’s Peter Zoellner.

4. Iran is searching for to fast-track photo voltaic power tasks in an effort to ease biting electrical energy shortages due to crumbling infrastructure and years of US sanctions. Tehran is hoping initiatives on renewable power would alleviate a disaster that has compelled it to restart rolling blackouts this 12 months.

5. Unique: The UK Treasury is predicted to shut a tax loophole that retailers have argued provides on-line teams equivalent to Shein an unfair benefit over excessive avenue chains, as chancellor Rachel Reeves seems to be to shore up the general public funds. Learn extra on the assessment of import levies on low-cost parcels.

• LLP reform: Reeves can be making ready a crackdown on attorneys, accountants, docs and different professionals who use tax partnerships.

The Massive Learn

Starvation for electrical energy from information centres powering the bogus intelligence increase is driving the renaissance of gasoline. However Massive Tech’s demand for electrical energy can be inflicting a provide crunch within the generators required for gas-powered crops. Learn extra on the fallout from the AI-fuelled dash for gas.

We’re additionally studying . . . 

• UK Hongkongers: Individuals who fled the Chinese language territory lately are offended at London’s proposal to double the length of time required to achieve citizenship.

• Upside of ‘weight problems gene’: A examine has revived the concept that a genetic mutation chargeable for weight problems might also protect towards excessive ldl cholesterol and coronary heart illness, writes Anjana Ahuja.

• Bubble speak: When establishments such because the IMF speak of valuations “nicely” in extra of observable actuality, they’re switching on the fasten-your-seatbelts sign, writes Katie Martin.

• Inside Oklo: The Silicon Valley nuclear know-how firm has no revenues however its inventory market valuation has rocketed past $20bn, boosted by investor enthusiasm.

Be a part of Sarah O’Connor and John Burn-Murdoch for a dwell Ask an Expert Q&A tomorrow as they sort out your questions on how AI is reshaping the world of labor. The dialog coincides with the launch of ‘The AI Shift’, their new publication, which you’ll be able to signal as much as here.

Graphic of the day

Plans to attach the UK’s Excessive Velocity 2 rail line to the West Coast Major Line past Birmingham have been placed on maintain for the following 4 years in the latest delay to the nation’s most costly rail challenge.

Take a break from the information . . . 

Guests to artwork festivals this month may have witnessed a whole bunch of galleries plying their commerce to well-heeled collectors. But the gallery mannequin, within the face of financial pressures and digital competitors, is experiencing a slow death, writes Melanie Gerlis.