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A state-appointed commissioner gave the green light Tuesday to a contested new liquefied natural gas (LNG) terminal considered crucial to Italy’s plan to wean itself off Russian gas.

Its approval came as new Prime Minister Giorgia Meloni told parliament her government’s priority would be helping businesses and households cope with sky-high energy bills and investing in alternative energy sources.

The floating storage and regasification unit will be set up in the port of Piombino in Tuscany, Commissioner Eugenio Giani told a press conference in Florence, despite opposition from environmental activists and locals.

The Golar Tundra, owned by Italian gas group Snam, is expected to be operational by the end of March and will allow gas to be easily transported to the country’s heavily industrialised north.

The project was a key part of former prime minister Mario Draghi’s plan to reduce Italy’s reliance on Russian gas following the invasion of Ukraine.

His energy minister Roberto Cingolani, who is staying on in an advisory role to help Meloni, said earlier this month that the Piombino terminal is “essential to national security”.

This was echoed by the head of Italian energy giant Eni, Claudio Descalzi, who said Italy “absolutely needs” the unit to stave off a crisis in 2023, which is set to be “a much more complex year”.

The terminal will mean “lower energy bills for 60 million Italians” as well as “the ability to… have gas more easily without depending on Russia,” Commissioner Giani said Tuesday.

– ‘Unfeasible’ –

But unions, local citizens and even Piombino’s mayor have said it will pose health and safety risks for locals and tourists who travel between the port city and the island of Elba, a popular holiday destination.

And environmental associations have warned the terminal, which will receive LNG and transforms it back into natural gas, will slow down Italy’s transition to renewable energy.

Greenpeace Italy has slammed the project as based on “incomplete assessments, superficial considerations and unfeasible timelines”.

Simone Tagliapietra, adjunct professor of energy, climate and environmental policy at the Johns Hopkins University – SAIS Europe, told AFP that regasification units “do not have a particular environmental impact”, nor would this one constitute “an eyesore”.

The Piombino unit is not only “fundamental for Italy” but also an energy source “diversification that benefits the whole of Europe”, he said.

Giani said the terminal would remain in the port for three years, after which it would be moved elsewhere.

Piombino mayor Francesco Ferrari has said he will appeal against the decision.

Before the war in Ukraine, Italy imported 95 percent of the gas it consumed.

Forty percent of that came from Russia, a figure that has since dropped to 10 percent after Draghi took steps to boost gas from other producers, while also accelerating a shift towards renewable energy.

Saudi Arabia’s energy minister on Tuesday blasted the release of emergency oil stocks as an attempt to “manipulate markets”, the latest apparent salvo in a spat with Washington over oil production.

“People are depleting their emergency stocks, had depleted it, used it as a mechanism to manipulate markets while its profound purpose was to mitigate shortage of supply,” Prince Abdulaziz bin Salman told an investor conference in the Saudi capital.

“However, it is my profound duty to make it clear to the world that losing emergency stock may become painful in the months to come.”

Prince Abdulaziz did not single out the United States in his comments about emergency stocks, but last week US President Joe Biden announced he was putting the final 15 million barrels on the market from a record release of US strategic reserves.

That tranche was to complete a 180-million-barrel release authorised in the spring, in response to price hikes linked to Russia’s invasion of Ukraine.

It also came on the heels of a decision by the OPEC+ oil cartel, which Riyadh co-leads with Moscow, to cut oil production by two million barrels a day from November.

The cartel’s decision has drawn intense criticism from the White House, which has said it amounted to “aligning with Russia” in the Ukraine war.

Prince Abdulaziz pushed back against that assessment on Tuesday.

“I keep listening, are you with us or against us? Is there any room for, ‘We are for Saudi Arabia and for the people of Saudi Arabia’?” he said to applause.

Asked about getting the decades-old partnership between Riyadh and Washington back on track, he said: “I think we as Saudi Arabia decided to be the maturer guys and let the dice fall.”

Speaking on an earlier panel, Saudi investment minister Khalid al-Falih described the dust-up as “unwarranted” and temporary.

“If you look at the relationship with the people side, the corporate side, the education system, you look at our institutions working together, we are very close, and we will get over this recent spat that I think was unwarranted,” he said.

JPMorgan Chief Executive Jamie Dimon also said he was optimistic that bilateral ties would eventually improve.

“Saudi Arabia and the US have been allies for the last 75 years… They’ll work it through,” he said. 

“These countries will remain allies going forward.”

– Davos in the Desert –

Hundreds of CEOs and finance moguls are in Riyadh for the three-day Future Investment Initiative (FII), a Davos-style investment conference that analysts say will highlight Saudi Arabia’s geopolitical muscle despite strained ties with Washington.

The FII, often referred to as “Davos in the Desert”, was launched in 2017 as an economic coming-out party for the world’s largest crude exporter, which is trying to diversify away from oil under Crown Prince Mohammed bin Salman.

The 37-year-old who is first in line to the throne “takes a very hands-on approach” to projects associated with his Vision 2030 reform agenda, said Kristin Diwan of the Arab Gulf States Institute in Washington.

“Ultimately those attending will know that they will need his approval or those of his confidants to work in the kingdom,” she said.

Up to 400 American CEOs are expected to participate in the conference, though unlike in previous years there is no representation from the US government.

The event’s organiser told AFP last week that American officials had not been invited.

“Saudi Arabia needs to attract American investment, technology, and popular interest to succeed,” Diwan said.

“It still remains to be seen if this broader engagement can be maintained if the political mood in the United States turns hostile toward Saudi Arabia.”

German Chancellor Olaf Scholz said on Tuesday that rebuilding Ukraine was a “generational task” as experts gathered for an international reconstruction conference for Ukraine in Berlin.

Scholz as current head of the G7 club of wealthy nations said Ukraine could count on the support of the international community for decades to come as it seeks to repair and upgrade essential infrastructure.

“What is at stake here is nothing less than creating a new Marshall Plan for the 21st century — a generational task that must begin now,” Scholz said as he opened the conference.

Rebuilding Ukraine marks a “challenge for generations”, Scholz said, but one that also provided a chance to modernise its roads, bridges, schools, hospitals and transport links.

The chancellor also stressed that Ukraine should be reconstructed with its hoped-for accession to the EU in mind.

“The European Union’s commitment to Ukraine as a future member is one of the most consequential geopolitical decisions of our times,” he said.

Speaking at the same event, European Commission chief Ursula von der Leyen called the scale of destruction in the war-ravaged country “staggering”, with the World Bank estimating the toll of the damage at 350 billion euros ($345 billion). 

“This is for sure more than one country or one union can provide alone,” she said. “We need all hands on deck.”

– Budget hole –

Ukrainian President Volodymyr Zelensky was also addressing the one-day conference, which brought together international organisations and private sector representatives as well as political leaders.

He appealed to international supporters to cover his country’s $38-billion budget hole for 2023, saying such assistance was essential if Ukraine is to get back on its feet.

“At this very conference we need to make a decision on assistance to cover the next year’s budget deficit for Ukraine,” he said, speaking to the event via video link.

“It’s a very significant amount of money.”

His prime minister Denys Shmyhal said funding was urgently needed “to help us survive this winter to save the people from humanitarian catastrophe”.

He said alleviating the crisis would also “save the European continent from the migration wave, from the immigration tsunami” that has already seen millions of Ukrainians fleeing to the EU.

– ‘To be or not to be’ –

Speaking during a panel session at the event, Ukraine’s communities minister Oleksiy Chernyshov said reconstruction work should begin as soon as possible.

“It is clear we should start it immediately” to build a country that will lure back those who have fled the war, he said.

“We need to act now,” Werner Hoyer, president of the European Investment Bank, added. “The later we start, the higher the bill will be one day.”

“It is now that energy is needed. It is now that basic services for the population should be delivered. It is now that transport links should work or be reestablished. And it is now that businesses working under unimaginable conditions should be supported,” Hoyer said.

Polish Prime Minister Mateusz Morawiecki urged Europe to stand strong against Russia as the war grinds on, warning against attempts to seek an end to the fighting at any cost.

“The policy of appeasing Russia is bankrupt and everyone who is still trying to enact it drags Europe down,” he said.

Quoting Shakespeare, Morawiecki said it was a moment of truth for Europe to stand up for its purpose and values. 

“The world only deals with strong players — Europe must prove its strength. It is our ‘to be or not to be’ moment,” he said.

The pound shot higher Tuesday as former finance chief Rishi Sunak became Britain’s prime minister, while stocks mostly rose as bond yields slid.

Sunak on Tuesday promised to bring economic stability after the turmoil that forced predecessor Liz Truss out of Downing Street.

“Right now our country is facing a profound economic crisis,” he told the nation in a televised address.

He vowed to place “economic stability and confidence at the heart of this government’s agenda”, and kept Jeremy Hunt on as finance minister.

His reassuring message resonated on bond markets, where the yields on British government bonds, or gilts, fell. Rising bond yields had helped push Sunak’s predecessor Liz Truss out of office.

“UK gilt yields have continued to track lower, as Rishi Sunak’s journey to Downing Street further improves market sentiment after a tumultuous month,” said Joshua Mahony, senior market analyst at online trading platform IG.

“With yields falling into a one-month low, we are seeing markets provide a clear vote of confidence that Sunak will manage to avoid the kind of missteps taken by his predecessor,” he added.

The pound was up 1.9 percent at $1.489 in late European trading.

A strong pound is not good for many multinational firms listed on London’s blue-chip FTSE 100 index, which ended the day down half a point.

Frankfurt stocks rose 0.9 percent and Paris jumped 1.9 percent. 

Lower US bond yields also helped Wall Street, which was solidly higher in late morning trading.

Some market support also came from reports suggesting the Federal Reserve could slow its pace of interest rate hikes.

The central bank’s policy of ramping up US borrowing costs to fight decades-high inflation has hammered global markets this year as investors worry that they will send the economy into recession.

“Investors are getting more confident that inflation will soften as the consumer rethinks massive purchases,” said Edward Moya, analyst at Oanda trading group.

Consumer confidence in the United States weakened more than anticipated in October, reinforcing hopes that the Fed could slow down or pause its interest rate hikes.

“Fed rate hike expectations will remain volatile, but expectations are growing that a weaker economy will let the Fed pause their tightening after the February policy meeting,” said Moya.

Investors also had quarterly earnings reports to wade through, with better-than-expected quarterly numbers from Coca-Cola and GM helping boost sentiment.

General Motors climbed 3.3 percent as the US automaker confirmed its full-year financial forecast despite a “challenging environment”, saying that consumer demand remained strong.

Third-quarter profits rose 37 percent to $3.3 billion on soaring revenues.

Shares in Coca-Cola gained 1.6 percent as the drinks giant posted double-digit gains in revenue and profits.

Earlier Tuesday, US tech giant Meta resolved a major WhatsApp outage that prevented its popular service from connecting or sending messages.

Meta shares rose 4.1 percent.

In commodities trading meanwhile, European gas prices wobbled around 100 euros per megawatt hour, while the drop in the dollar helped global oil prices edge higher.

In Asian equities trading, Hong Kong steadied after the previous session’s rout triggered by China President Xi Jinping tightening his grip on power.

– Key figures around 1530 GMT –

New York – Dow: UP 0.8 percent at 31,742.28 points

EURO STOXX 50: UP 1.6 percent at 3,585.58

London – FTSE 100: FLAT at 7,013.48 (close) 

Frankfurt – DAX: UP 0.9 percent at 13,052.96 (close)

Paris – CAC 40: UP 1.9 percent at 6,250.55 (close)

Tokyo – Nikkei 225: UP 1.0 percent at 27,250.28 (close)

Hong Kong – Hang Seng Index: DOWN 0.1 percent at 15,165.59 (close)

Shanghai – Composite: FLAT at 2,976.28 (close)

Pound/dollar: UP at $1.1489 from $1.1281 on Monday

Dollar/yen: DOWN at 147.63 yen from 148.95 yen

Euro/dollar: UP at $0.9976 from $0.9876

Euro/pound: DOWN at 86.80 pence from 87.56 pence

West Texas Intermediate: UP 0.6 percent at $85.09 per barrel

Brent North Sea crude: UP 0.2 percent at $93.45 per barrel

burs-rl/cdw

Rishi Sunak on Tuesday became Britain’s third prime minister this year and the first person of colour to lead the former imperial power, vowing to overcome economic crisis provoked by the “mistakes” of Liz Truss’s calamitous 49-day tenure.

In his first order of business, Sunak retained Jeremy Hunt as chancellor of the exchequer, bidding to keep financial markets on side after Truss’s budget plans shocked investors.

Sunak, a practising Hindu who at 42 is Britain’s youngest leader since 1812, became the ruling Conservatives’ new leader on Monday after a prior stint as chancellor himself.

Addressing the nation in Downing Street Tuesday shortly after his appointment by King Charles III, Sunak said the country faced “profound economic crisis”. 

“I will unite our country — not with words, but with action,” Sunak said, capping the latest extraordinary twist in UK politics following Boris Johnson’s demise in July.

– ‘Mistakes’ –

Departing shortly before, Truss wished him “every success” — and said she remained “more convinced than ever” that Britain needed to be “bold” in confronting the challenges it faced.

Sunak countered that though she was motivated by a well-intentioned desire to kick-start growth, her tax-cutting measures were “mistakes nonetheless”. 

“And I have been elected as leader of my party and your prime minister in part to fix them,” he said.

“And that work begins immediately. I will place economic stability and confidence at the heart of this government’s agenda,” he added, helping to drive the pound more than one percent higher against the dollar Tuesday.

Sunak’s appointment followed rival contender Penny Mordaunt failing to secure enough nominations from Tory MPs, and Johnson dramatically aborting a comeback attempt late on Sunday.

Breaking his silence, Johnson offered his “full and wholehearted support” to Sunak — having privately blamed his ex-minister for toppling him in July.

Sunak in turn praised Johnson, and vowed to build on the election-winning promises that earned the Conservatives a big victory in 2019, despite their dismal standing in polling today against the opposition Labour party.

But Sunak also issued a coded reminder of the many scandals that brought Johnson down, vowing his own premiership would offer “integrity, professionalism and accountability at every level”.

In other cabinet appointments, Sunak retained James Cleverly as foreign secretary, and brought close ally Dominic Raab back as deputy prime minister and justice secretary. He also retained Ben Wallace in the defence brief.

– ‘Groundbreaking’ –

In his Downing Street speech, Sunak pledged unstinting support for Ukraine even while warning of “difficult” budget choices ahead.

US President Joe Biden called the appointment of the first British-Indian prime minister “groundbreaking” and “pretty outstanding”.

“Together, I look forward to enhancing our cooperation on issues critical to global security and prosperity, including continuing our strong support for Ukraine,” Biden said in a tweet.

European leaders offered their own congratulations, while Irish premier Micheal Martin reminded Sunak of their “shared responsibility” to safeguard peace in Northern Ireland following tensions under Johnson and Truss.

Labour leader Keir Starmer praised Sunak on “making history as the first British-Asian PM”. 

But he added: “The Tories have crashed the economy, with low wages, high prices and a cost-of-living crisis. The public needs a fresh start and a say on Britain’s future.” 

Sunak has rebuffed opposition calls for a snap general election after becoming the latest leader who lacks a direct mandate from the electorate, but he promised to govern on the basis of the 2019 manifesto.

Pollster Ipsos said that 62 percent of British voters want an election by the end of the year.

– ‘Unite or die’ –

Britain’s Conservative-supporting media hailed the appointment of Sunak, a wealthy descendant of immigrants from India and East Africa. 

“The force is with you, Rishi,” ran The Sun’s headline, playing on his love of “Star Wars” films. 

But the left-leaning Guardian highlighted Sunak’s warning to Conservative MPs that the party must “unite or die”.

Truss left office as the UK’s shortest-serving premier in history, after her disastrous tax-slashing budget sparked economic and political turmoil.

The 47-year-old announced her resignation last Thursday, admitting she could not deliver her mandate from Conservative members — who had chosen her over Sunak in the summer to replace Johnson.

Iain Duncan Smith, a former Conservative leader, said MPs now understood the “existential threat” facing the Tories, and that they needed to unite or accept being “out of power for a long time”.

Coca-Cola reported a jump in profits Tuesday due in part to price increases but said some consumers are beginning to pull back due to inflation.

The soda giant, which has benefited in recent quarters from the return of pro sports, movie theater sales and other outing-oriented sales as Covid-19 restrictions ebb, again cited this trend as a positive for its results, lifting some of its full-year projections following the better-than-expected results.

Profits rose 14 percent to $2.8 billion on a 10 percent jump in revenues to $11.1 billion.

The company’s unit case volumes rose by four percent, while pricing/mix jumped 12 percent. The “price/mix” category refers not only to retail prices, but also to the mix of goods sold and the geographic and distribution channels.

Compared with the year-ago period, price/mix rose 19 percent in Europe/Middle East/Africa, 15 percent in North America, four percent in Asia Pacific and 12 percent in Latin America.

Chief Executive James Quincey, who has previously described the negative impact on sales due to price hikes as modest compared with historic norms, said the latest batch of results suggested somewhat greater pain among consumers.

“We’re seeing some changes in consumer behavior,” Quincey said on a conference call with analysts.

“It would seem to us that Europe is probably the most obvious example,” with more consumers now buying at discount retailers, a trend seen to a lesser extent in the United States.

“Clearly the impact of inflation running ahead of wages is starting to come through now that the summer is over and back to school has happened,” he said.

Shares rose 0.9 percent to $58.06 in mid-morning trading.

German sportswear giant Adidas said Tuesday it was ending its partnership with Kanye West after a series of anti-Semitic outbursts by the controversial rapper.

Recent comments by West — known formally as Ye — were “unacceptable, hateful and dangerous”, Adidas said in a statement. 

“After a thorough review, the company has taken the decision to terminate the partnership with Ye immediately.”

Adidas said it would “end production” of the highly successful “Yeezy” line designed together with West and “stop all payments to Ye and his companies”.

The abrupt end to the collaboration between the sports outfitter and rapper would slash Adidas’s net income in 2022 by “up to 250 million euros ($246 million)”, it estimated.

Adidas’s decision to dump the artist was “overdue”, said Josef Schuster of the Central Council of Jews in Germany.

“For weeks, West has caused worldwide furore with his anti-Semitic remarks,” Schuster said, adding that the rapper’s comments had become “intolerable”.

– T-shirt statement –

Adidas began a review of its relationship with West earlier this month after he appeared at a fashion show in Paris wearing a shirt with the slogan “White Lives Matter.”

The phrase is a dog whistle to right-wing groups in the United States and a reaction to the Black Lives Matter movement.

Days later he was locked out of Twitter and Instagram for threatening to “Go death con 3 on JEWISH PEOPLE.”

Comments made by West “violate the company’s values of diversity and inclusion, mutual respect and fairness”, Adidas said Tuesday.

The artist was associated with rival sportswear company Nike for years but broke away in 2013, lending his name to Adidas as they launched their first Yeezy shoe together in 2015 — a partnership that went on to make him a billionaire. 

Along with Beyonce, Stella McCartney and Pharrell Williams, West’s has been one of the top names used by Adidas to boost sales, especially online.

Adidas is the latest brand to part ways with West following his recent outbursts. Paris-based fashion house Balenciaga ended ties with the rapper last week, saying it “no longer (has) any relationship nor any plans for future projects related to this artist.”

One of Hollywood’s biggest talent agencies, CAA, also said Monday it was dropping West, while film and TV producer MRC said it was shelving an already-finished documentary about the artist.

– Inflammatory remarks –

Adidas’s decision would stop West from “using the company’s immense platform to amplify his hateful ideology about Jews”, the World Jewish Congress said in a statement.

The German group’s “delayed move” in response to the anti-Semitic comments had come after “massive public outcry heavily”, the WJC said.

Rights campaigners and entertainment world figures had heaped pressure on Adidas to stop working with the rapper.

“Those who continue to do business with West are giving his misguided hate an audience,” Ari Emanuel, CEO of entertainment agency Endeavor, wrote in the Financial Times. 

“There should be no tolerance anywhere for West’s anti-Semitism.”

West’s ex-wife Kim Kardashian also appeared to join the pile-on, without mentioning the father of her children by name.

“Hate speech is never OK or excusable,” she wrote on Twitter and Instagram on Monday.

“I stand together with the Jewish community and call on the terrible violence and hateful rhetoric towards them to come to an immediate end.”

Adidas fell sharply on the Frankfurt Stock Exchange following its announcement, with shares down almost eight percent at 95.88 euros in afternoon trading.

Stock markets were mixed Tuesday as traders reacted to earnings reports, while Hong Kong steadied after the previous session’s rout triggered by China President Xi Jinping tightening his grip on power.

The pound climbed more than one percent as markets welcomed the appointment of former finance chief Rishi Sunak as Britain’s prime minister.

Sunak on Tuesday promised to bring economic stability after the turmoil that forced predecessor Liz Truss out of Downing Street.

“Right now our country is facing a profound economic crisis,” he told the nation in a televised address.

He vowed to place “economic stability and confidence at the heart of this government’s agenda”.

“This will mean difficult decisions to come,” Sunak added.

Some market support came from reports suggesting the Federal Reserve could slow its pace of interest rate hikes.

The central bank’s policy of ramping up US borrowing costs to fight decades-high inflation has hammered global markets this year as investors worry that they will send the economy into recession.

“Investors are getting more confident that inflation will soften as the consumer rethinks massive purchases,” said Edward Moya, analyst at Oanda trading group.

“Fed rate hike expectations will remain volatile, but expectations are growing that a weaker economy will let the Fed pause their tightening after the February policy meeting.”

It comes as investors pore over earnings updates from some of the world’s biggest companies.

Shares in HSBC slumped 6.3 percent after the banking giant warned on bad loans owing to global economic headwinds.

Elsewhere, shares in General Motors climbed 2.0 percent as the US automaker confirmed its full-year financial forecast despite a “challenging environment”, saying that consumer demand remained strong.

Third-quarter profits rose 37 percent to $3.3 billion on soaring revenues.

Shares in UPS and Coca-Cola were also trading higher after releasing earnings reports.

“Their gains are generating some offsetting support, yet there is a big earnings shadow that is hanging over the market and likely keeping investor enthusiasm in check this morning after the market’s big run,” said market analyst Patrick O’Hare at Briefing.com.

“That shadow is the earnings reports that will be heard after today’s close from Microsoft, Alphabet, and Visa,” he added, companies which outweigh those that reported today by market capitalisation several times over.

The Dow dipped 0.2 percent as Wall Street opened for trading, but both the S&P 500 and tech-heavy Nasdaq Composite moved higher.

Earlier Tuesday, US tech giant Meta resolved a major WhatsApp outage that prevented its popular service from connecting or sending messages.

Meta shares rose 2.8 percent.

In commodities trading meanwhile, European gas prices nudged back above 100 euros per megawatt hour, and global oil prices also edged higher.

– Key figures around 1330 GMT –

London – FTSE 100: DOWN 0.6 percent at 6,971.91 points

Frankfurt – DAX: DOWN 0.3 percent at 12,896.77

Paris – CAC 40: UP 0.7 percent at 6,173.20

EURO STOXX 50: UP 0.3 percent at 3,536.88

New York – Dow: DOWN 0.2 percent at 31,450.92

Tokyo – Nikkei 225: UP 1.0 percent at 27,250.28 (close)

Hong Kong – Hang Seng Index: DOWN 0.1 percent at 15,165.59 (close)

Shanghai – Composite: FLAT at 2,976.28 (close)

Pound/dollar: UP at $1.1423 from $1.1281 on Monday

Dollar/yen: DOWN at 148.05 yen from 148.95 yen

Euro/dollar: UP at $0.9931 from $0.9876

Euro/pound: DOWN at 86.91 pence from 87.56 pence

West Texas Intermediate: UP 0.4 percent at $84.94 per barrel

Brent North Sea crude: UP less than 0.1 percent at $93.33. per barrel

burs-rl/gw