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from MacroScope:

Five days on, Ukraine accord at risk of unravelling

An international agreement to avert wider conflict in Ukraine, brokered only five days ago, is teetering with pro-Moscow separatist gunmen showing no sign of surrendering government buildings and Kiev and Moscow trading accusations over who was responsible for killings over the weekend.

Washington, which signed last week's accord in Geneva along with Moscow, Kiev and the European Union, said it would decide "in days" on additional sanctions if Russia does not take steps to implement the agreement. U.S. Vice President Joe Biden is in Kiev where he is expected to announce a package of technical assistance.

So far, markets’ worst fears have not materialized but with thousand of Russian troops massed on the frontier with Ukraine and deadly clashes between Ukrainian forces and pro-Russian separatists, it would not take much to change that.

The European Commission handed documents to EU member states last week explaining the potential impact on their economies of imposing stricter trade and financial sanctions on Russia. There is talk of an emergency meeting of EU leaders if necessary but building a consensus on tougher measures is tricky in Europe where many countries rely on Russian energy exports.

from Global Investing:

Ukraine and the IMF: a sense of deja vu

The West has just agreed to stump up a load of cash for Ukraine but there is a distinct sense of deja vu around it all.

Let's face it - Ukraine's track record on how it manages ts economy and foreign affairs isn't great. This is the third aid programme Kiev has signed with the International Monetary Fund in a decade and two of them have failed. The IMF has its fingers crossed that this one will not go the way of the past two. Reza Moghadam, the IMF's top European official, tells Reuters in an interview:

from MuniLand:

Transmission America

While Congress and President Obama dither over replenishing the nearly depleted Highway Trust Fund, a more fundamental part of America’s fabric is quietly being strengthened. While derelict bridges garner headlines, it is our fragile power grid that can inconvenience tens of millions of Americans when power goes out in a summer heat wave. The federal government is taking the lead as an Edison Electric Institute report says:

Recognizing the importance of transmission to the nation’s economy, security and quality of life, the Administration recently announced the first ‘Quadrennial Energy Review,’ building off of its Blueprint for a Secure Energy Future, instructing the heads of twenty-two executive departments and agencies to collaborate on a year-long review of transmission and distribution infrastructure.

from The Great Debate:

The nuclear option for emerging markets

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Last year, greenhouse gas emissions reached a record high of 39 billion tons. Emissions actually dropped in the United States and Europe, but substantial increases in China and India more than erased this bit of good news.

That is all the more reason to focus on innovative solutions that slow the growth in emissions from emerging markets.

from MacroScope:

Firing up Brazil’s economy

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A hot, dry spell in southeastern Brazil has pushed up energy prices, stretched government finances and raised the threat of water rationing in its largest city, Sao Paulo, just months before it hosts one of the world's largest sport events, the soccer World Cup.

It looks like the last thing Brazil needed as it scrambles to woo investors and avoid a credit downgrade.

from Breakingviews:

Privatisations a bright spot for gloomy Aussie M&A

By Una Galani

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

Privatisation is a bright spot in what looks to be an otherwise dreary year for Australian dealmakers. The country is set for a flurry of activity as cash-constrained local governments prepare to flog existing infrastructure assets in order to fund new projects and create jobs.

from The Great Debate:

The shale factor in U.S. national security

The boom in domestic shale oil and gas production has increased U.S. prosperity and economic competitiveness. But the potential for this to enhance our national security remains largely unrealized.

The shale surge has boosted production by 50 percent for oil and 20 percent for gas over the last five years. Yet our political leaders are only just beginning to explore how it can help further national strategic interests.

from Breakingviews:

Coal typifies China’s reform: it’s hard and dirty

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By John Foley 

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Coal is much like China’s reform challenge: hard and dirty. Even as politicians fret about the country’s chronic smog, they approved 100 million tonnes of new mining capacity in 2013, six times the amount for the previous year. That will add to the 300 million tonnes or so already due to come on stream in 2014. The habit is proving difficult to kick.

from The Great Debate:

Is nuclear power the answer on climate change?

James Hansen’s latest press conference was positively scary.

NASA’s former chief climate scientist (he recently left government to pursue a more activist role) met with environmental journalists last month at Columbia University to release a new study with the ominous title, “Assessing Dangerous Climate Change: Required Reduction of Carbon Emissions to Protect Young People, Future Generations and Nature.”

Hansen and his co-authors contend that the agreed-to goal of limiting global warming to 2 degrees Celsius (3.6 degrees Farenheit) above pre-Industrial levels prescribed in the recent Intergovernmental Panel on Climate Change report is still too high to prevent “long-lasting, irreversible damage” to our planet -- including raising sea levels, submerging coastal cities and turning vast tracts of the earth into virtual furnaces.

from Breakingviews:

Hard to find phoenix in ashes of Batista’s empire

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By Christopher Swann
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

 

It’s hard to find a phoenix in the ashes of Eike Batista’s empire. There are real assets buried under the tycoon’s collapsed EBX Group. Even so, the onetime flagship energy explorer will emerge with poor growth prospects. Investors have already priced in big things for the port and electricity arms. And too much depends on a resurgent Brazilian economy.

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