The administration of US President Donald Trump has pressured Germany and France to withdraw part of their emergency diesel stocks to help increase global supply and reduce fuel prices, hinting at the possibility of imposing a US ban on diesel exports if the two countries do not respond, according to three sources familiar with the discussions.
The US administration asked the European Union, according to a European source, to release about 120 million barrels of diesel during the next six months, in a move that reflects mounting pressure on Europe to contribute to alleviating the scarcity of refined petroleum products in global markets.
The European Commission, France, Italy, Ireland and Britain, along with Germany, are holding discussions on Thursday regarding the potential need to release diesel stocks, according to an EU official.
An American official said that it is in Europe's interest to "work with the United States" on multiple paths to increase supplies of refined products and reduce their costs for consumers.
The American pressure comes at a time when the Trump administration is considering banning American diesel exports with the aim of increasing supply in the local market and reducing fuel prices, with the midterm elections approaching in November.
US Energy Secretary Chris Wright said on Wednesday that the administration expects European announcements to be issued soon regarding additional supplies of diesel, noting that the markets have lost part of diesel exports coming from the Middle East and China.
Wright added that some diesel exports from the Middle East are starting to return, but the recent unrest has led to the loss of large amounts of supplies.
The US administration is particularly concerned about France and Germany, as Washington believes that the two countries have not fully implemented previous pledges to release emergency stocks of oil and petroleum products.
An official at the Elysee Palace said that French President Emmanuel Macron did not discuss the issue with Trump during their meeting on the sidelines of the United Nations General Assembly meetings in New York last week. But the official explained that Macron will hold a video conference with the leaders of the G7 countries to discuss the rise in fuel prices and the availability of refined products globally, including coordinating the release of reserves in cooperation with the International Energy Agency.
Europe's dependence on American fuel increased after it banned imports of Russian oil and products in the wake of the Russian war on Ukraine, at a time when the American-Israeli war on Iran led to the disruption of supplies from the Middle East.
The Turkish authorities accelerated their steps to deal with the investment funds crisis that erupted in mid-September, causing major losses to the main index of the Istanbul Stock Exchange and the flight of huge investments from the markets. The Capital Markets Authority decided to disburse temporary amounts to investors in 131 investment funds owned by 7 companies that had previously issued an order to liquidate them within a time period of up to 6 months.
The Authority stated, in a statement issued early Thursday, that investors in the “Terra Portfoy”, “Bossola Portfoy”, “Atlas Portfoy”, and “Hadaf Portfoy” Asset Management funds will receive the full amounts of their investments if they are less than one million Turkish liras. As for investors whose net investments amount to one million liras or more, they will receive one million liras as a temporary payment.
The Banking Regulatory and Supervision Authority announced that the Savings Deposit Insurance Fund will assume the shareholders’ rights in 3 investment banks and two commercial finance companies involved in the fund crisis. The decision included the transfer of ownership shares in the two companies within 6 months, with the Savings Deposit Insurance Fund exercising the voting rights associated with those shares until the transfers are completed.
Turkish Vice President, Cevdet Yilmaz, announced that the “Funds Coordination Council” will hold its second meeting on Friday morning, pointing out that the road map to resolve the crisis has been determined, and that all relevant institutions are taking concrete steps in coordination among themselves.
In terms of investigations, the Public Prosecution in Istanbul decided to arrest 5 officials and executives, including the two executives of Terra Company, Emir Munir Saripinar and Erden Ozel. 12 officials from the 7 companies that managed the tampered funds were previously arrested, while investigations are still ongoing with 20 others.
Justice Minister Akin Gorlik said that all assets confiscated as part of the investigations will be directed to providing the necessary resources for the system established for the benefit of the victims and will be deposited in the accounts designated to repay their dues.
An exceptional year of corporate earnings growth is driving US stock market gains, but investor hesitation about the boom continuing unimpeded is starting to seep into stock valuations. Investors are preparing for another strong period of profits, with companies starting to announce third-quarter results in the coming weeks, at a time when expectations now indicate that the profits of Standard & Poor's 500 index companies will rise by more than 35 percent during the entire year.
“Investors like me wonder how sustainable these huge numbers are,” said Walter Todd, chief investment officer at Greenwood Capital. “We have achieved strong profits, but the downside is that comparisons will be very difficult for many of these companies next year.”
Any faltering in the engine of spending on artificial intelligence comes at the forefront of profits risks, as this spending has enhanced the profits of companies that build the infrastructure necessary for this technology. Other risks include the ability of companies spending on artificial intelligence to achieve sufficient investment returns, and the repercussions of rising interest rates.
