Category Archives: Commodities

Going for a song: why music legends are lining up to sell their rights

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Stars follow Bob Dylan’s lead as streaming boom and Covid-19 upheaval fuels gold rush in song rights

Bob Dylan just made more than $300m (£227m) doing it, Dolly Parton says she might do the same, while the singer-songwriter David Crosby says he is being forced to do it. Musicians are queuing up for big paydays by selling the publishing rights to their songs, as the streaming boom and industry upheaval wrought by the Covid-19 pandemic redefines the economics of music.

Dylan’s surprise move this week to sell the publishing rights to his 600 songs, from Blowin’ in the Wind to Knockin’ on Heaven’s Door, was described by the buyer, Universal Music, as one of the most important deals of all time. 

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EU leaders approve sanctions on Turkish officials over gas drilling

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Bloc defers decision on trade tariffs and arms until consultation with Biden administration

EU leaders have agreed to impose sanctions on an unspecified number of Turkish officials and entities involved in gas drilling in Cypriot-claimed waters – but they deferred bigger decisions such as trade tariffs or an arms embargo until they have consulted with the upcoming Biden administration.

The decision reached by the EU council after hours of heated debate disappointed hardliners such as France, Cyprus and Greece, which had pressed for more urgent and substantive action to express EU disapproval of Turkish foreign policy.

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Denmark to end new oil and gas exploration in North Sea

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Decision as part of plan to phase out fossil fuel extraction by 2050 will put pressure on UK

Denmark has brought an immediate end to new oil and gas exploration in the Danish North Sea as part of a plan to phase out fossil fuel extraction by 2050.

On Thursday night the Danish government voted in favour of the plans to cancel the country’s next North Sea oil and gas licensing round, 80 years after it first began exploring its hydrocarbon reserves.

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Things are looking up for oil, but Opec can’t uncross its fingers just yet

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Despite good vaccine news and price rises, the cartel could still meet a few bumps in the road – some of them of its own making

When oil ministers from the world’s largest fossil-fuel nations meet via webcam this week to make decisions about the global oil market in 2021, they could be forgiven for indulging in a little early festive cheer.

Oil prices have more than doubled since tumbling below $20 a barrel and hitting 21-year lows during “black April” – when Covid restrictions brought major economies to their knees, and caused what is thought to have been the worst month in the history of the oil industry.

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Stock market rally pushes Dow Jones to record high of 30,000

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  • Dow rallies by 450 points to close above 30,000 for first time
  • Investors cheer hopes of vaccine and smooth Biden transition

The Dow Jones Industrial Average has topped the 30,000 mark for the first time as financial markets around the world rally amid hopes for a coronavirus vaccine and smooth transition to a Joe Biden presidency.

The landmark for the Wall Street market comes as investors bet rapid medical advances will bring the Covid outbreak to an earlier end than feared, paving the way for a swift economic rebound next year as business activity returns closer to normal and tough government restrictions are relaxed.

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Goldmining having big impact on indigenous Amazon communities

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Study calls for more rights for indigenous reserves as rising gold price attracts more miners

A new report has exposed the scale and impact of mining on indigenous reserves in Amazon countries as gold prices soared during the Covid-19 pandemic. More than 20% of indigenous lands are overlapped by mining concessions and illegal mining, it found, covering 450,000 sq km (174,000 sq miles) – and 31% of Amazon indigenous reserves are affected.

The report, released on Wednesday by the World Resources Institute, said indigenous people should be given more legal rights to manage and use their lands, and called for better environmental safeguards. As pressure mounts over the issue, a leading Brazilian thinktank has called for regulations tracing gold sold by financial institutions.

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How did a ‘cocktail of violence’ engulf Mozambique’s gemstone El Dorado?

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Clashes between Isis-linked militants, government troops and mercenaries have displaced 200,000 in mineral-rich Cabo Delgado

For decades a forgotten corner of Mozambique, Cabo Delgado has now become the country’s El Dorado, promising billions in natural gas and gemstones but delivering its population only violence and displacement.

An insurgency in the province now threatens to become further entrenched – 50,000 people have fled their homes since March and Mozambique’s neighbours are currently debating sending in regional forces to help defeat militants who seized a strategic port in the town of Mocímboa da Praia last month.

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At least 50 killed in collapsed gold mine in east Congo, says NGO

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Cave-in occurred at artisanal mine, in an industry where fatalities are common

At least 50 people are thought to have died when an artisanal gold mine collapsed near Kamituga in the east of the Democratic Republic of Congo, a local mining NGO said.

The cave-in occurred on the Detroit mine site at around 3pm local time (13.00 GMT) on Friday following heavy rains, said Emiliane Itongwa, president of the Initiative of Support and Social Supervision of Women.

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‘War on plastic’ could strand oil industry’s £300bn investment

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Major oil firms plan to grow plastic supply to counter impact of shift against fossil fuels

The war on plastic waste could scupper the oil industry’s multi-billion dollar bet that the world will continue to need more fossil fuels to help make the petrochemicals used in plastics, according to a new report.

Major oil companies, including Saudi Aramco and Royal Dutch Shell, plan to spend about $400bn (£300bn) to help grow the supply of virgin plastics by a quarter over the next five years, to compensate for the impact of electric vehicles and clean energy technologies on demand for fossil fuels.

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Norway plans to drill for oil in untouched Arctic areas

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Critics say plan for fields off Svalbard threatens ecosystem and relations with Russia

Norway is planning to expand oil drilling in previously untouched areas of the Arctic, a move campaigners say threatens the fragile ecosystem and could spark a military standoff with Russia.

A public consultation on the opening up of nine new Norwegian oilfields closed on Wednesday. The areas in question are much further north in the Arctic than the concessions the US president, Donald Trump, announced for Alaska this month.

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UN-supported Libya government and rival authority call ceasefire

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Development raises hopes of political solution as both sides call for end to oil blockade

Libya’s UN-supported government has announced a ceasefire across the oil-rich country and called for the demilitarisation of the strategic city of Sirte, which is controlled by rival forces.

In a separate statement Aguila Saleh, the speaker of the rival House of Representatives in the east, also called for a ceasefire. The announcements came amid fears of an escalation in the more than nine-year-old conflict.

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Witness K is in the dock but institutions vital to Australia’s democracy are on trial | Ian Cunliffe

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Some people seem to be above the law. Those people do not include the whistleblower and his lawyer, Bernard Collaery

Timor-Leste only achieved independence in 2002. It was Asia’s poorest country and desperately needed revenue. Revenue from massive gas resources in the Timor Sea was its big hope. But it needed to negotiate a treaty with Australia on their carve-up. Australia ruthlessly exploited that fact: delays from the Australian side in negotiating a treaty for the carve-up of those resources, and repeated threats of more delays, were a constant theme of the negotiations. In November 2002 the former Australian foreign minister Alexander Downer told Timor-Leste’s prime minister, Mari Alkatiri: “We don’t have to exploit the resources. They can stay there for 20, 40, 50 years.” In late 2003 Timor-Leste requested monthly discussions. Australia claimed it could only afford two rounds a year. Poor Timor-Leste offered to fund rich Australia’s expenses. Australia didn’t accept.

Related: Witness K and the 'outrageous' spy scandal that failed to shame Australia

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Seven top oil firms downgrade assets by $87bn in nine months

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Thinktank says changes to forecasts reflect accelerated shift away from fossil fuels

The world’s largest listed oil companies have wiped almost $90bn from the value of their oil and gas assets in the last nine months as the coronavirus pandemic accelerates a global shift away from fossil fuels.

In the last three financial quarters, seven of the largest oil firms have slashed their forecasts for future oil market prices, triggering a wave of downgrades to the value of their oil and gas projects totalling $87bn.

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Stock markets boom as hopes rise for US economic stimulus and Covid-19 vaccine

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S&P edges towards all-time record with oil prices and hospitality stocks rising as investor optimism rebounds

US stock markets moved closer to record highs on Tuesday after investors bet on a fresh round of government spending to lift the economy and counter the effects of the Covid-19 pandemic.

The S&P 500, seen as the broadest measure of US investor sentiment, raced to a 10-point gain by mid afternoon to leave it just 16 points short of the all-time high reached in February.

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Gaddafi’s prophecy comes true as foreign powers battle for Libya’s oil

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A showdown looms in the fight for control of the country – with Africa’s largest oilfields as the prize

In August 2011, as Libya’s rebels and Nato jets began an assault on Tripoli, Colonel Muammar Gaddafi delivered a speech calling on his supporters to defend the country from foreign invaders.

“There is a conspiracy to control Libyan oil and to control Libyan land, to colonise Libya once again. This is impossible, impossible. We will fight until the last man and last woman to defend Libya from east to west, north to south,” he said in a message broadcast by a pro-regime television station. Two months later, the dictator was dragged bleeding and confused from a storm drain in his hometown of Sirte, before being killed.

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German economy in sharpest decline since 1970, as markets await US GDP – business live

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Here in Britain, roughly one in three furloughed workers returned to work in the first two weeks of July, when pubs, bars, restaurants and hotels reopened, official data from the Office for National Statistics showed today.

Businesses surveyed between 29 June and 12 July said 7% of their staff had returned from furlough within the past fortnight, while 17% remained on leave. The government-funded job retention scheme pays 80% of their salaries and covers more than 9 million people at the moment, about a third of the private-sector workforce. But it will be scaled back from Saturday and come to an end on 31 October.

Here is our full story on Airbus. The Toulouse-based planemaker has been hit hard by the collapse in air travel, and received only eight new orders between April and June, compared with 290 in the first quarter.

Related: Airbus slows plane-making as Covid-19 leads to £1.7bn loss

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Shell reports $18bn loss as global oil and gas prices collapse

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Energy giant hit by massive change in fortunes as Covid-19 crisis forces writedown in asset values

Royal Dutch Shell has reported a deep financial loss after a record writedown on the value of its oil and gas assets due to the collapse in global market prices triggered by coronavirus.

The Anglo-Dutch oil giant revealed a net loss of $18.3bn (£14.1bn) for the second quarter 2020, down sharply from a net profit of $3bn over the same period last year and $2.7bn in the first three months of 2020.

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Gold eases from new $1,980 record as dollar lifts ahead of Fed meeting – business live

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Gold rally cools amid profit-taking

Julie Palmer, partner at business advisory and restructuring firm Begbies Traynor, says:

The success of Greggs has been the envy of the high street in recent years, however, even the bakery chain hasn’t been immune to the impact of Covid-19 which has forced its stores to close and eaten away at its top line.

For Greggs, achieving rent reductions from landlords will be first on the tick list, and indeed this has been a priority for many on the high street. But once these costs have been reduced its push to return to success will begin. And given its track record of marketing & PR success with its famous vegan sausage roll, I wouldn’t be surprised to see another high profile campaign on the horizon that captures the sentiment of a nation experiencing seismic change.

Let’s have a look at today’s corporate news. Greggs, Britain’s biggest bakery chain (known for its vegan sausage roll) has warned that sales won’t get back to pre-pandemic levels for as long as physical distancing continues.

But it’s fared better than other retailers: sales are now running at 72% of the 2019 level. All of its 2,050 stores reopened by July, after being forced to close during the Covid-19 lockdown imposed on 23 March. Greggs made a £65.2m loss before tax in the first half, compared with a £36.7m profit a year ago.

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Chesapeake Energy, fracking pioneer, files for bankruptcy owing $9bn

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The Oklahoma City-based company helped turn the US into a global energy powerhouse but ran up huge debts in the process

Chesapeake Energy, the shale gas drilling pioneer that helped to turn the United States into a global energy powerhouse, has filed for bankruptcy protection.

The Oklahoma City-based company said on Sunday that it had been forced to enter chapter 11 protection because its debts of $9bn were unmanageable.

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Huge oil discovery off Guyana raises the stakes in election fraud case

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If discredited president refuses to accept imminent ruling over March vote, investors likely to be scared off

Allegations of mass vote fiddling in the former British colony of Guyana may lead to the country’s discredited government being ostracised unless a court hearing next week can resolve a bitter dispute over election results.

The political stakes in Guyana have risen massively since May 2015 when Exxon Mobil discovered oil reserves potentially worth more than $100bn (£80bn) 200km (124 miles) off the coast – a find big enough to transform a Latin American country of fewer than 1 million people with a GDP of $3bn largely based on sugar, timber, molasses and bauxite. Its current income of $5,250 per head is projected to rise to above $10,000 next year alone.

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