NYSE-parent ICE plans to launch battery metals derivatives this year
"Our customer base is looking to us to provide products to hedge. Our role is to make sure there's a broad product suite," Chris Rhodes, president of ICE Futures Europe, told the FT Global Commodities Summit in Lausanne, Switzerland.
The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here.
"ICE are planning to launch battery raw materials this year, lithium and cobalt and spodumene will be the start of that."
A ICE spokesperson said the exchange was looking at adding contracts in lithium carbonate, lithium hydroxide, lithium spodumene and cobalt.
Exchanges across the globe are seeking to capture strong expected growth in demand for minerals needed for electric vehicles and storage batteries.
The CME Group Inc (CME.O), opens new tab and the London Metal Exchange (LME) offer futures in lithium and cobalt while the LME hosts the world's most active nickel contract.
China's Guangzhou Futures Exchange has seen strong growth in its lithium carbonate futures since their launch in July 2023, but there are hurdles for foreigners to participate.
Earlier this month, the Singapore-based Abaxx Commodities Exchange launched a lithium carbonate contract and in January it kicked off trading in nickel sulphate.
Last year, UK-based Global Commodities Holdings Ltd said it was working with ICE to create cash-settled derivatives contracts that can be settled and cleared centrally.
The LME is owned by Hong Kong Exchanges and Clearing Ltd (0388.HK), opens new tab.
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The Independent
14 minutes ago
- The Independent
There won't be a wealth tax – but Rachel Reeves can't afford to rule it out just yet
Normally, when politicians decline to rule something out, a sceptical media and public believe they are about to do it. But there should be one exception to this rule. Keir Starmer, Rachel Reeves and other ministers are refusing to rule out introducing a wealth tax in this autumn's Budget, when the chancellor is likely to raise taxes by at least £20bn to stick within her fiscal rules. I'm told Starmer and Reeves will not bring in a new wealth tax, such as the 2 per cent levy on assets of more than £10m advocated by a growing number of Labour MPs and Neil Kinnock, the party's former leader, to raise £10bn. A wealth tax is an easy slogan and fits on to a banner. It would do nicely for the Starmer allies hoping to nudge him in a more progressive direction as he seeks a long overdue 'story' for his government. But Reeves and Starmer are not convinced. The chancellor thinks wealth taxes don't work. Twelve developed nations had them in 1990s but only three remain; only one, in Switzerland, brings in lots of money. Reeves burnt her own fingers by targeting non-doms – a process begun by Jeremy Hunt, the outgoing Tory chancellor. I'm told Reeves privately dismissed fears the rich would respond by leaving the UK, saying: "They always say that, but it never happens." It is happening, and she is now considering changing her plan to make worldwide assets, including those in foreign trusts, liable to inheritance tax. One government insider told me: 'People can choose where to pay their taxes. It's very easy to move countries and they are doing it.' A new wealth tax would be complex, take years to introduce and probably not be worth the candle. Dan Neidle, founder of Tax Policy Associates, said its study found such a tax would 'lower long-run growth and employment, thanks to a decline in foreign and domestic investment. It would make UK businesses more fragile and less competitive, and create strong incentives for capital reallocation and migration.' Why not just say no to a wealth tax now? Reeves offered one explanation to her Tory predecessor Norman Lamont at a Lords committee hearing this week. He told her he found it 'a bit strange' the government has not ruled out the move. Reeves replied that if she ruled out one tax rise, the media would move on to the next option, and assume that one was going to happen if she failed to rule it out. A fair point – but not her only reason. Reeves and Starmer need to build bridges with the parliamentary Labour Party after it filleted their welfare legislation, so rejecting a wealth tax now would inflame tensions. I suspect that when the Budget comes, Reeves and her allies will whisper to Labour MPs they are introducing a form of wealth tax through other measures, while avoiding headlines about implementing a specific one. Another reason not to rule out a wealth tax is to help message discipline. Labour certainly needs more of that: ministers unwittingly fuelled speculation about tax rises in media interviews by giving different definitions of "working people'. Far easier to say taxes are a matter for the Budget and we don't comment in advance. Some senior Labour figures think Reeves's reticence is because she is considering proposals that are close to being a wealth tax – for example, increasing property-based taxes. I think she should bring in higher council tax bands for the most expensive properties. It's ludicrous that this tax is based on 1991 property values, and that in England, people in homes valued at more than £320,000 pay the same amount in their local authority. Reform could be sold as a genuine levelling up measure the Tories flunked as it would cut bills in the north and Midlands while raising them in the south. Alternatively, Reeves could increase capital gains tax for the second Budget running, perhaps by bringing it into line with income tax rates, which are higher. Some in government favour a rise in income tax with the money earmarked for defence, as I have suggested. Another option is to raise the top rate of income tax from 45 per cent to 50 per cent. But both ideas would leave Labour open to the charge of breaching its manifesto pledge not to increase income tax, national insurance or VAT. Reeves could argue that circumstances had changed in a more dangerous world. But breaking its promise might be a step too far for an already deeply unpopular PM and party. I don't think there will be a wealth tax. However, the rich shouldn't celebrate. The Budget will increase existing taxes on the wealthy, in line with the government's mantra of protecting "working people", while ensuring 'those with the broadest shoulders carry the greatest burden'. Health warning: creating losers is not pain-free for them or the government, as Reeves discovered when she brought in the ' family farms tax '. But reforming some taxes under a better banner – 'fair tax' – is her best shot.
The Independent
14 minutes ago
- The Independent
There is a way to boost economic growth without spending money
Repeatedly, we hear Keir Starmer and Rachel Reeves are putting pressure on ministers and departments to generate ideas for economic growth. So, here is one: the third sector. Start using the civil society, as it's also called, to its full potential, to drive the economy. A new report from the Gradel Institute of Charity at Oxford University, A Third Way of Doing Growth, makes a persuasive case for a fresh look at this frequently ignored national resource. Research by Pro Bono Economics for the study suggests the third sector creates at least £39.5bn of economic value a year if volunteer hours are factored in – and well over £100bn if the full economic contribution by the sector is assessed. Adds the report: 'Statistical evidence also shows that there are many persistent societal challenges that the third sector can often tackle more effectively (and therefore more cost-efficiently) than the public or private sector alone.' So, a win-win. Stephen Bubb, executive director of the Gradel Institute and a former head of the charity leaders' representative body, Association of Chief Executives of Voluntary Organisations, argues that a huge opportunity is being missed. 'The government should think about the third sector and how they can harness its energy and strength,' he says. Bubb said similar to Tony Blair in his third term as prime minister. The result was the appointment of Ed Miliband as the first third sector minister and a white paper. As with many such initiatives, it was promptly forgotten as the government changed. It was resurrected, of sorts, under David Cameron with his 'big society' push. 'Cameron got the point about how civil society could be used more,' says Bubb, 'but he tried to implement it at the same time as the austerity programme.' As a result, it never took off. What is different this time is that Labour are desperate for something new that does not involve the spending of vast sums of public money. The report makes a few key recommendations. Firstly, deliver better social business models for social care. Currently, the market is dominated by private firms, which are mostly extractive, putting little back, taking out their profits. New businesses mean new jobs, new tax revenues, and significant net gains for local economies. Secondly, focus on prevention to reduce crisis management. A lot of the focus in the third sector is on assisting people once they are in crisis. 'The prisons are full,' says Bubb. 'The state is hopeless at rehabilitation. Charities are good at it, they know what they are doing. Prisoners leaving and going into jobs is seeing them making a positive contribution to society, to the economy. Charites are better at helping them in securing work than the state. It's the same with mental health – the charities' record in this area is also much better.' Rebuild social connection to drive social mobility. A decline in investment in public social infrastructure, combined with Covid and the rise of social media, has led to 'a crisis of social connection in the UK – one of the most important factors in social mobility and economic inclusion,' the report says. The problem is especially acute among the nearly 1 million young adults not in employment, education, or training (Neets). 'The most effective means to engage this cohort is through charitable and voluntary institutions which – through community-based approaches and one-to-one engagement – have a proven ability to connect with those most distant from society.' Help government rewire delivery of public services. Starmer has talked about his ambition for a 'complete rewiring of the British state' to better serve the needs of the people. 'By involving the third sector in this endeavour, government has enormous potential to move away from for-profit commissioning to innovating services built around people's real-life needs and a far greater focus on rewarding organisations based on the outcomes achieved.' To that end, they suggest creating a 'Civil Society Satellite Account' in the national accounts, so there is clarity as to the third sector's full value (similar to how tourism and other sectors are treated). Sixteen countries already do this, but not the UK. They also recommend opening up public sector procurement to the third sector to transform service delivery. Of the £350bn a year that the government spends on procurement, only £21bn is administered by the third sector, meaning their skills, abilities and perspectives are simply not being efficiently deployed. Other suggestions include: building a national programme of volunteering, aimed particularly at those 18-25 Neets; and creating innovative partnerships to rebuild the social infrastructure critical for inclusive growth. As Bubb says: 'It is not so much a policy shift but the better, more focused use of an enormous resource.' It also plays to Labour ideology. Put like that, you do wonder what Starmer and Reeves are waiting for.
Daily Mirror
14 minutes ago
- Daily Mirror
Direct trains from UK to top European city with €4 beers set to start soon
A deal has been signed for an expansion on rail travel from the UK to a popular European destination - making it easier than ever for people to go on city breaks For those looking for a quick city break - there's a new European destination that will now be easily accessible via train. Britain and Germany have just signed a landmark deal that will "fundamentally change how millions of people travel". Named The Kensington Treaty, the agreement will hopefully be in place in the early 2030s and marks a shift in relations between the two nations. It was sealed by German Chancellor Friedrich Merz's on his first official visit to the UK on July 17. One of the key elements of the deal - as outlined in the UK goverments Plan for Change is the commitment to provide a long-distance direct passenger rail service between the two capitals according to The Times. It's expected travel time from London to Frankfurt is likely to take about five hours and London to Geneva is expected to take five hours and 20 minutes. Eurostar and other train operators had an eye on expanding the number of destinations served by the Channel Tunnel since the original service was launched in the 1990s. It also allows there to be easy travel to other German cities including Frankfurt. The joint UK-Germany transport taskforce will now explore the infrastructure, border and security needs to be able to create the route. As well as looking into the commercial and technical requirements such as safety standards and what is needed from rail operators to make the direct service happen. Transport Secretary, Heidi Alexander, said: 'We're pioneering a new era of European rail connectivity and are determined to put Britain at the heart of a better-connected continent. "The Brandenburg Gate, the Berlin Wall and Checkpoint Charlie - in just a matter of years, rail passengers in the UK could be able to visit these iconic sights direct from the comfort of a train, thanks to a direct connection linking London and Berlin." "This landmark agreement - part of a new treaty the Prime Minister will sign with Chancellor Merz today - has the potential to fundamentally change how millions of people travel between our two countries, offering a faster, more convenient and significantly greener alternative to flying.'" It comes after Eurostar has since announced plans to launch direct services to Frankfurt and Geneva in the early 2030s, as well as working on a direct route to Berlin.
