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Glencore shares fall to record low

Shares in commodity giant Glencore have plunged 30%, with an investment bank making a grave warning about the company’s value.

In one of the worst ever days of training for a FTSE 100 company, shares in Glencore dropped to 68.62p.

After a warning by investment bank Investec that without major restructuring the value of Glencore and fellow mining company Anglo-American could “evaporate”, more than £3.5bn was wiped off the company’s value.

The fall in the share price is comparable to the losses suffered by major banks after the collapse of Lehman Brothers in 2008.

The miner and commodity trader has been struggling for some time, with shares shrinking in value by 87% from 530p since the company was first floated in 2011.

Glencore has been hit by falling metal prices, which in turn, have been driven by fears of a slowdown in the Chinese economy. Copper, aluminium and nickel are all down 25% compared to this time a year ago.

More fallout as Shell quits Arctic

Environmentalists across the world are celebrating today, after Shell announced they would stop oil drilling operations in the Arctic for the “foreseeable future”.

But what about the other companies working in the region?

While oil drilling in the American region of the Arctic looks unlikely, in the other areas it’s continuing apace. A day before Shell announced its decision to pack up and go home, Italian oil multinational Eni announced that its £5.6bn platform, Goliat, will ready to go in the coming weeks.

Goliat, which is 65% owned by Eni with the remainder in the hands of Norwegian firm Statoil and has been hampered by long delays, is stationed 80km off the north coast of Norway, atop an oil reserve which it is estimated could pump out 100,000 barrels of oil a day.

To date, other oil projects in the Arctic have been hampered by the tumbling oil price. BP’s Prudhoe Bay field and Gazprom’s Prirazlomnoye platform in the Pechora Sea, are the only other two oil platforms in the region.

With short-term prospects in the Arctic looking bleak, Shell will go back to its other dirty energy projects like the Alberta tar sands in Canada. While the company could also focus on finding new energy resources aside from hydrocarbons, with Shell told by investors to test the firm’s business models against international climate goals at the company’s last AGM.

Climate pledges falling short ahead of UN conference

As each country sets out its commitments to cut carbon emissions ahead of the UN climate conference in Paris at the end of the year, experts have warned that the targets fall short of what is necessary to prevent the world heating beyond the danger mark of 2 degrees.

An increase of more than 2 degrees would see the world face irreversible climate change, with the flooding of coastal cities and islands and severe disruptions to animal and human life.

Analysis by the Washington-based firm Climate Interactive found that pledges by the US, China, Brazil and the European Union would still see the world heat up by 3.5 degrees, compared with pre-industrial temperatures.

Another report by Climate Action Tracker, based in Europe, found that the world was on track for temperature increases of 3 degrees.

With India still to make their climate pledge, more is needed to combat climate change.

In other news

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US: Morgan Stanley gives up on energy stocks