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Stocks continue to rise as markets assess the impact of US shutdown
Gold traded at near-record highs as investors digested potential ramifications from a U.S. shutdown. Meanwhile, a weak U.S. private labour market report strengthened bets that the Federal Reserve will cut rates. The prolonged shutdown of the U.S. federal government could delay or disrupt the release of important official data, such as those on inflation and employment. This would cloud the picture of the health of the largest economy in the world and the direction of interest rates. A Friday release of the monthly payroll report is unlikely. This brings into focus an ADP employment report from overnight that showed unexpected job losses in September. The traders are pricing in two quarter point Fed rate cuts before the end of this year. Kevin Thozet of Carmignac Asset Management, who is a member of the investment committee, said, "I hope that they can sort this quickly." He was referring to the shutdown in the federal government. Inflation data were also due before the next Fed meeting. He said, "It is like a man walking with a dog who has no sight." He added that while U.S. stock prices have done well, the dollar has weakened due to uncertainty over the credibility of U.S. financial institutions in general. SHUTDOWN ANGST HURTS DOLLAR AND BOOSTS GOLD On Thursday, the MSCI global stock index rose by about 0.3%, after European stocks reached a new record high of about 0.7%. Wall Street futures also rose between 0.2 to 0.4%. The tech shares in Asia rose earlier, contributing to the rise in regional stock indexes. This was partly due to news that South Korean chip giants Samsung and SK Hynix had signed partnerships with OpenAI data centers. Gold reached an overnight high of $3.895.09, as a combination of Fed easing and shutdown anxiety pushed it to a new all-time record. This also supported U.S. Treasuries by sending yields dramatically lower. Gold last rose 0.4% to $3,880. Overnight, the yield on two-year Treasury bonds fell to a new two-week low at 3.531%. It was last seen at 3.5429%. Michael Brown, Senior Research Strategist at Pepperstone, said: "As it is usually the case, new highs will likely beget more fresh highs. The momentum remains firmly with bulls and the fundamental argument for further upsides in PMs (precious Metals) is also a strong one." The U.S. Dollar Index, which measures the currency's performance against six major counterparts, has been stuck near an overnight low of 97.459, which was a new one-week low. It was last trading at 97.567 and down 0.2% on Wednesday's closing price. In remarks made at an industry conference, Bank of Japan Deputy governor Shinichi Uchida expressed confidence that the conditions were in place for another rate hike. The euro increased slightly to $1.1752 while the sterling remained largely unchanged at $1.34815. The oil prices fell on Thursday as concerns over an oversupply of the market continued to weigh. Brent crude futures dropped 0.4%, to $65.09 a barrel. U.S. West Texas Intermediate crude fell 0.4%, to $61.54 a barrel.
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Venezuelan students turn plastic waste into classroom desks
In the northwestern part of Venezuela, a local foundation has turned piles of broken furniture and discarded plastic into desks. El Zulia Recicla in the capital of Zulia, Maracaibo has so far refurbished 160 desks using plastic waste collected from students. The foundation does not build new furniture but instead repairs metal frames that are damaged and replaces the missing parts with molded panels manufactured in its workshop. The research director of the foundation, Nicolino Bácho, said: "We show that desks with damaged wood and falling apart can be restored." Already, 20 desks were delivered to Ramon Reinoso Nunez school, where previously students sat on the ground or used backpacks for chairs. Maritza Jaimis, the school's director, said: "We have a lot of desk issues. Theft and wear take their toll over time." She said, "We had hoped that they would take more but are grateful for the 20 restored ones." The foundation, which is partly funded by France's embassy, has a goal to provide 200 desks in 10 schools located in areas that are vulnerable. This initiative is part of a larger effort to raise awareness about the environment and reduce plastic pollution in the region. Mariela Nava, Efraino Otero and Mariela Nava report.
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Rugby Australia and New Zealand compete for Rugby Championship medals in Perth final
Australia and New Zealand will meet again on Saturday at the Perth Stadium, after a brutal battle at Eden Park. Both teams are hoping to claim, even temporarily, the Rugby Championship Trophy. South Africa will not be able to celebrate their victory, as they must wait until after the match against Argentina, at Twickenham, in order to win back-to-back championships. The prospect of a showdown between the two teams in Perth should not dampen the excitement. Perth's much improved hosts will be looking to give prop James Slipper a fitting send-off in his final and 151st international. Scott Robertson’s All Blacks will, on the other hand, be desperate to maintain their traditional dominance against their trans-Tasman competitors. New Zealand has already secured the bilateral Bledisloe cup with a 33-24 victory at Eden Park, but it will still want to end the Rugby Championship on a positive note after a sometimes sobering campaign. The All Blacks' record defeat in Wellington against a revitalized South Africa and their first ever loss in Argentina to the Pumas, made them seem like a fading superpower half way through the World Cup cycle. New Zealand's egos would suffer another crushing blow if they were to lose the match against Australia, who is their usual punching bag. Robertson and his team would also be under increased pressure. Joe Schmidt has made the Wallabies happier despite their losing record of 2-3 in this tournament. The Tides Turning for 2027 World Cup Hosts Schmidt's blowout losses in his first season as coach are just a year old, but they seem like a bygone era. The fans have been packed to their seats for home matches in this season, but they are more likely to be disappointed by the results than hopeful. Andrea Piardi's capricious officiating and a late yellow-card could have prevented Australia from leaving Eden Park with the Bledisloe and a chance to reclaim it for the first 23 years. They left with a feeling of being aggrieved and the 10th consecutive loss to the All Blacks. This may be useful for settling the score in Perth. Schmidt told journalists on Thursday that if we were to win this week we would finish at the very least second. "That's incredible when compared to the last season or even season before. I do believe there is growth in the team. I cannot guarantee it will be linear, but I can guarantee the effort. The additions of Will Skelton from France and Rob Valetini on the bench, after he missed Eden Park due to a calf injury, will make Australia stronger. Schmidt gambled that Tane Edmed, who had a shaky debut at the Sydney loss to the Pumas in his number 10 jersey in the absence of flyhalf James O'Connor after he was benched for a full match at Eden Park due to some costly mistakes with the boot. Robertson also has thrown caution out the window, dropping Billy Proctor at centre in favor of Quinn Tupaea. Leicester Fainga’anuku will be playing on the wings for the first time since the World Cup 2023. New Zealand appears as vulnerable as ever, which could make the Wallabies as dangerous as ever. (Reporting from Ian Ransom, Melbourne; Editing done by Ken Ferris).
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Nepal celebrations hollow for families mourning protesters
The homes of Chaulagains, a family that has lost a son in Nepal's worst civil unrest, are suffused with grief. Ganesh Prsad Chaulagain (53), who lost his 18-year-old son Shreeyam in the political turmoil which ravaged the Himalayan country last month, said: "Dashain should be filled with joy, but this is the first year that I feel only sadness." The capital of Nepal, Kathmandu, was filled with music and the smell of festive feasts as he spoke in the echoing quiet of his family's home. The student, a high schooler, was shot in the face on 8 September near Parliament after he participated in a peaceful protest against corruption that spiralled into two days of violence. Nepal is slowly recovering from the violence that was sparked by so-called Gen Z protests, which were sparked by young people angry at perceived political indifference and lack of employment. 74 people died in these protests and they brought in a new interim administration. It has been reported that "high velocity firearms" were used to fire "live bullets" at least 33 out of the 58 demonstrators who died in the anti-graft demonstrations. The Chaulagains, like many others in the mountainous Nepal, lived off a meager monthly income. In their case, it was less than $200. They made sure Shreeyam got an education and hoped he would find a job abroad, maybe in Germany, in order to reduce their financial burden. Nepal's median age is 25 years. However, a lack in employment has caused nearly a third its youth to leave their homes in search of work that will ensure economic security. Nepal's instabile politics has not made matters any easier, with 14 government changes in less than 20 years. Sushila Karaki, 73, former chief justice of the Supreme Court was appointed interim prime minister after the protests to prepare for the elections scheduled for March 5. However experts warn that the task will be difficult. The Chaulagains and relatives of those killed in the protests are now demanding that the government provide them with regular economic assistance, not just an one-time payment. The father of Shreeyam, who died in a car accident, said that Dashain would never be the same. (Reporting and editing by Clarence Fernandez in KATHMANDU, Sahana Bajiracharya from KATHMANDU)
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S&P 500 and Nasdaq Futures Advance on New Rate-Cutting Optimism
Futures linked to the S&P 500 index and the Nasdaq Index advanced early on Thursday. A day earlier, weaker than expected private payroll data had boosted hopes for rate cuts. Traders were bracing for a session with little data due to the U.S. Government shutdown. Investors are still sensitive to any sign of policy easing. Rate-cutting optimism has been a major factor in the recent rally, which has pushed equities up to high valuations. Investors are now relying on alternative data sources to fill the data vacuum left by the shutdown. This includes Wednesday's ADP National Employment Report which was weaker than anticipated. Arnim Wooder, global macro-strategist at Easterly EAB, said that it would likely strengthen those in the Fed policymaking panel who think the labor situation warrants at least another cut. The ADP report could be the last labor market data for some time. Traders interpreted the lower reading as sufficient to nudge the Fed towards a 25 basis point rate cut at the next meeting. Kyle Rodda is a senior financial analyst at Capital.com. He said, "It appears that the U.S. economic system needs further policy support." At 06:41 am. At 06:41 a.m. ET, Dow E Minis were down 26 or 0.06%. S&P 500 E Minis were up 11.25 or 0.17%. Nasdaq E Minis were up 92 or 0.37%. On Wednesday, the benchmark S&P 500 index and blue-chip Dow ended at record highs. The shutdown, which began on Wednesday, has already affected the weekly report on jobless claims, an important indicator of the labor market's health. This report was due to be released on Thursday. In the past, shutdowns of government agencies have not had a significant impact on equity market. Investors are looking for signs of monetary ease, and the data vacuum is a risk. Investors will also be analyzing the comments of Dallas Fed President Lorie Lo Logan on Thursday. Tesla's stock rose 1.6% ahead of the release of its quarterly delivery report. Shares of Lithium Americas, listed on the NYSE, fell 4.6% following a downgrade by Canaccord Genuity. Equifax and TransUnion credit bureaus fell 12.2% each and 11.3% respectively after FICO launched its program to allow mortgage lenders access to scores without having them rely on bureaus. FICO was up by 10.7%. Advanced Micro Devices rose 2.9% following a report that Intel had begun early discussions to include the chipmaker as one of its foundry customers.
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Czech billionaire Kretinsky sells Thyssenkrupp stake after JV plans fail
The Czech billionaire Daniel Kretinsky agreed to sell his 20 percent stake in Thyssenkrupp’s steel business and scrap plans for joint venture, according to a statement released by both parties. This could pave the way for an agreement with Jindal Steel. The sale of the stake ends long-running discussions about what could have been a German and Czech steel and energy giant. Discussions that have made no measurable progress since Kretinsky purchased a fifth in Thyssenkrupp Europe (TKSE) late last year. Thyssenkrupp shares, which had earlier reached a high of six years, briefly fell on the news, before recovering and trading 1.6% higher by 1042 GMT. Thyssenkrupp can now move forward with its talks with India's Jindal Steel International. Jindal Steel International last month made an indicative offer for the entire TKSE business, a volatile one that its parent had been trying to sell for years. The statement stated that Kretinsky’s EP Group “respects Thyssenkrupp's AG preference to focus on discussions with Jindal Steel International” and that the purchase price paid by Kretinsky’s EP Group to Thyssenkrupp to acquire the TKSE shares would be reimbursed. People familiar with the situation estimate the price at approximately 140 million Euros ($164 million). This news comes at a time when uncertainty is growing about the future of steelmaking in Europe. The sector is battling with low-cost Chinese imports, rising energy costs, and a delayed decarbonisation based on hydrogen of one of the most pollution industries. The EP Group of Kretinsky and Thyssenkrupp aimed to form a joint venture with TKSE that would be 50/50. However, the talks have proved difficult as powerful unions accuse the Czech businessman for refusing engagement. $1 = 0.8511 Euros (Reporting and Editing by Matthias Williams, Louise Heavens, and Matthias Steitz)
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Taiwan will continue to cooperate in further restrictions on Russian Energy Imports
Taiwan's government announced on Thursday it would cooperate if "international allies", imposed further restrictions on Russian imports of energy, following criticism from a group non-governmental organizations about the island's business relationship with Russia. Taiwan, along with the United States, major Western allies, and other countries, put broad sanctions against Russia in 2022 after its invasion of Ukraine, but it did not ban explicitly imports, which are a major source of hard currency for Russia. Taiwan's Foreign Ministry responded to criticism on Tuesday from a group NGOs, including the Centre for Research on Energy and Clean Air, about Taiwan's continued use of Russian naphtha. The ministry stated that the government would continue to work closely with the United States and other democracies. Taiwan said that if international allies place further restrictions on Russian products, whether energy or otherwise, it would actively cooperate. It would show its unwavering determination to fight aggression and defend international order. Taiwan's Economy Ministry, which is responsible for energy policy, stated in a separate press release that it "urges local enterprises to purchase petroleum products that meet EU regulations". The report noted that while state-owned companies had stopped importing Russian crude oil by 2023, private firms were not restricted from doing so. The ministry added that "as international sanctions continue evolving, it will examine further relevant control measures and communication with domestic manufacturers." Data from shiptracker Kpler shows that Taiwan imported 102,000 barrels of refined products per day in the first nine month this year. This is up from 76,000 barrels per days in 2024. The data shows that petrochemical feedstock naphtha is the main import from Russia. (Reporting and editing by Hugh Lawson; Additional reporting in Singapore by Florence Tan)
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Kretinsky sells Thyssenkrupp steel stake as JV plans falter
The joint statement from both parties revealed that the Czech billionaire Daniel Kretinsky sold his 20% stake in Thyssenkrupp’s steel unit, and scrapped plans to create a 50/50 joint venture. This could pave the way for an agreement with Jindal Steel. The sale of the stake ends long-running discussions about what could have been a German and Czech steel and energy giant. Discussions that have made no measurable progress since Kretinsky purchased a fifth in Thyssenkrupp Europe (TKSE) late last year. Thyssenkrupp can now move forward with its talks with India's Jindal Steel International. Jindal Steel International last month made an indicative offer for the entire TKSE business, a volatile one that its parent had been trying to sell for years. In the statement, Kretinsky’s EP Group said it "respects Thyssenkrupp AG’s preference to focus on discussions with Jindal Steel International". This news comes at a time when uncertainty is growing over the future of steelmaking in Europe, due to cheap Chinese imports and high energy costs, as well as a delay of hydrogen-based decarbonisation for one of the most pollution industries. Kretinsky’s EP Group and Thyssenkrupp aimed to eventually form a 50:50 joint-venture for TKSE. However, talks have been difficult as powerful unions accuse the Czech businessman's refusal to engage. (Reporting and editing by Matthias Williams; reporting by Christoph Steitz)
The corporate agreement that protects the Amazon from soy agriculture is starting to crack

Brazilian soy farmers have been pushing deeper into the Amazon rainforest in order to plant more crops. This puts pressure on an historic deal signed 20 years ago that was meant to slow down deforestation.
A loophole exists in the Amazon Soy Moratorium. This voluntary agreement was signed in 2006 by the top grain traders of the world that they would no longer buy soy produced on deforested land after 2008.
Moratorium
The law protects the old-growth forest that has not been previously cleared. However, it excludes other types of vegetation or forests that have grown back on land that was cleared in the past, also known as secondary forests.
Farmers can plant soy on this land without violating the Moratorium's terms. They could even sell it as being deforestation free.
The latest official annual report, which covers crop year 2022-2023 showed that the soy planted in virgin forests has nearly tripled from 2018 to 2023. This amounts to 250,000 hectares or 3.4% of the total soy grown in the Amazon.
The study is only limited to those municipalities which grow more than 5,000 hectares soy.
Xiaopeng Song is a professor in the Department of Geographical Sciences at the University of Maryland. He has been tracking the expansion of soybeans over the last two decades and found that the forest loss was more than four-times as high.
Satellite data that he exclusively analyzed for shows that 16% or 1.04 million hectares of Brazilian Amazon land is under production for soybeans. This includes areas where trees were cleared since 2008, which was the date set in the Moratorium.
Song said, "I'd like to see secondary forests and recovered forests included in the Moratorium." It creates loopholes, if we limit it only to primary forests.
Abiove overseeing the Moratorium on deforestation said in a press release that the agreement is intended to curb the destruction of old growth forests, while other methods have broader criteria which could lead to "inflated" interpretations.
Abiove refused to provide granular information, so it was impossible to compare the two.
The data in the Moratorium Report comes from Brazil's National Institute of Space Research. Its assessments are internationally recognized and independently monitored.
Abiove confirmed that it knew some soy had been planted in areas where the regrown forest had been cut.
The difference in how a forest is defined has huge implications on conservation. Climate change-driven deforestation, heat and drought are bringing the rainforest to a tippingpoint beyond which its irreversible transformation begins. Scientists are calling for an end to deforestation and increased efforts in reforestation.
Viola Heinrich is a postdoctoral researcher with the GFZ Helmholtz Centre for Geosciences who has studied extensively secondary forests in Amazon. She said that these are "crucial" to limiting global climate change, even if they were initially less biodiverse.
We cannot achieve our goals
Paris Agreement
"We cannot increase the carbon sink without increasing ecosystems' regeneration." She said.
Carbon storage and absorption
Secondary forests store less carbon than old-growth trees, but they absorb it faster.
'STOLEN AGAIN'
Farmers were clearing land on a hot afternoon in late 2012, near Santarem. Santarem is a port town by the Amazon River. The stacked felled trees, which were ready to be burned, were neatly arranged in rows. Satellite images revealed that some of the trees were over 30 years old and part of an abandoned secondary forest, which was once cleared to make room for cattle.
Gilson Rego of the Pastoral Land Commission (a church-affiliated organization that works with locals who are affected by deforestation) pointed out areas in which soy was planted.
Rego has seen the area dedicated to crops grow in the last five year.
More than a dozen farmers, both subsistence and soy producers, who were interviewed said that the Cargill terminal nearby was the most attractive because it reduced logistics costs. Cargill has not responded to requests for comments.
Brazil is set to surpass the United States as the largest soy exporter in the world by 2020.
Around two thirds is shipped to China. Cofco, the largest buyer in China, has committed to the Moratorium. It is almost exclusively used to fatten livestock for meat production.
Song estimates that if the Moratorium had not been implemented and conservation efforts were not undertaken, an additional 6,000,000 hectares would have been lost in the Brazilian rainforest to soy, based on the rate of expansion. He said that Bolivia was a hotspot for deforestation.
Brazilian farmers have been against the Moratorium for years. They complain that even small amounts of deforestation will cause traders to refuse purchases from whole farms. Abiove has considered changing this policy.
At the moment, thousands of properties covering 10% of the footprint of soy in this region are blocked.
Adelino Avelino noimann, vice president of Para state's soy farmers association, located in Santarem, said that the soy boom created opportunities for a country in poverty.
Noimann said, "It is unfair that other countries could deforest or grow while we are stifled by laws not even our own."
LEGAL ATTACKS Farming organizations allied with right wing politicians, a once fringe movement, launched lawsuits and legislation attacks against the Moratorium, in Brasilia and half a dozen agricultural states. They sought to weaken the provisions. A justice of Brazil's Supreme Court announced at the end of April that it would allow Mato Grosso to remove tax incentives for signatories to the Moratorium.
The full court must still confirm the ruling.
Andre Nassar has hinted at the possibility of a weakening of the rules in order to appease the farmers.
Nassar, in April, told Senators that the solution was not to end the Moratorium. "Something must be done." ADM, Bunge Cargill Cofco, Louis Dreyfus Company, and other global traders signed the agreement in 2006. Abiove, the grain traders that it represents, have refused to discuss details publicly. However, Greenpeace which has been involved in some discussions and is part of Abiove's group, stated last year that traders were pushing to weaken this agreement behind closed doors.
Even with its flaws, environmentalists such as Andre Guimaraes - an executive director of IPAM, a nonprofit organization that monitors the accord - said it was still important.
He said, "We continue to see the expansion in soy in Amazon." But it could have been worse. Environmentalists say that loopholes should be closed to strengthen the law.
Para is a place where farmers have been moving from all over the country. This includes the heartland of soy, Mato Grosso.
Edno Cortezia is the president of the local farmer's union. He said that the farmers can harvest soy, wheat, and corn on the same plot within a year.
In the municipality of Belterra, near Santarem only a cemetery and a school were spared from soy expansion.
Raimundo Edilberto Sousa Freitas (the principal) showed court documents and supporting evidence in two cases where 80 children and teachers displayed symptoms of pesticide poisoning last year.
The records show that a farmer was fined later, but the crop continues claiming more area each year.
The last remnants of the once lush biome are a few large trees, protected by law, that remain in the soy fields. (Reporting and editing by Manuela Andréoni, Brad Haynes, and Claudia Parsons; Additional reporting by Ana Mano, Sao Paulo)
(source: Reuters)