Exxon CEOexpresses skepticism towards Trump's potential success in altering Europe's environmental, social, and governance regulations.
In the global economic landscape, China's economic slowdown is gathering pace, with retail sales, industrial production, and investment levels all falling below analysts' expectations. This downturn raises concerns about the world's second-largest economy and its impact on global markets.
Meanwhile, across the Atlantic, ExxonMobil's CEO, Darren Woods, has taken his concerns about a set of EU environmental disclosure regulations directly to President Trump. Woods views the EU's rules as trade-crushing overreach and believes Europe is suffocating itself by trying to build a green economy that isn't working.
The EU's rules around corporate sustainability reporting could impose steep fines on any company with business in Europe that can't show emissions progress across its supply chain. Brussels may be betting that companies like Exxon will have no choice but to comply with what's being asked of them at the risk of losing access to the European market.
However, Woods is pessimistic about the White House's ability to score a breakthrough on behalf of American fossil fuel firms in relation to these regulations. Trump, according to Woods, understands the challenge but has not yet responded in a way that Woods finds satisfactory.
The difficulty for Europe is how to maintain progress on climate, end oil and gas imports from Russia, and manage contentious trade relations with the US at the same time. The US and Europe have different stances on various issues, including the Gaza and Ukraine wars, renewable energy, and free speech.
In the midst of these challenges, Woods is keen on investing in LNG, believing long-term, the world's going to need LNG. He underpins his LNG investments with long-term offtake agreements. However, the uncertain regulation hanging overhead could obliterate the economics of any deal, posing a dilemma for Exxon.
Businesses, including Exxon, are also grappling with the impact of AI. While AI is used for automation more than collaboration, it intensifies fears the technology poses a greater threat to human jobs than previously thought.
In other news, Malawi's former leader Peter Mutharika is poised to return to power in elections today. Elsewhere, US retail sales rose in August for a third straight month, and President Donald Trump will be joined by Silicon Valley top brass on his state visit to the UK.
The Federal Reserve is closely watching spending trends as policymakers debate a path for interest rate cuts. In a separate development, the suspect in the assassination of conservative US activist Charlie Kirk was charged with aggravated murder.
In international affairs, President Donald Trump said the US military struck another Venezuelan ship allegedly carrying drugs. Israel launched its ground offensive into Gaza City, further eroding prospects for a ceasefire in the enclave.
Lastly, the US Securities and Exchange Commission approved a plan by Exxon to limit shareholder activism. A new proxy voting system will streamline the process for retail investors to back initiatives supported by Exxon managers, making it more difficult for activist proposals to gain support.
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