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After whistleblower complaints, US Farm Agency finds safety concerns at top research facility
USDA investigates safety problems at a research facility Experts warn that a decline in investment could threaten US agricultural innovation Hire a new director and modernize facility buildings as part of corrective measures Leah Douglas WASHINGTON, 26th June - In an investigation of 2023 complaints from whistleblowers about the condition of the site, The Department of Agriculture discovered significant safety issues. This was revealed in a report sent to the White House by the Office of Special Counsel. Beltsville Agricultural Research Center, located in Maryland, near Washington, D.C., houses laboratories that study climate change, invasive insect, animal genomics, and other topics. Exclusively reported in May 2023, BARC workers filed complaints about unsafe working conditions. These included broken fire alarms, ventilation systems, and wild temperature swings indoors. Experts warn that the U.S.'s position as a leader in agricultural innovation is threatened by declining government investments in agricultural research. According to a Wednesday letter from the OSC, the investigation ordered by the Office of Special Counsel (OSC) in 2023 substantiated whistleblower claims and revealed "pervasive" safety deficiencies, including excessive grime, damaged floors, mold, and a lack of potable drinking water. In the letter, it was stated that the poor condition of the building was due to inadequate funding, understaffing and a lack necessary tools and equipment. In the letter, it was stated that the investigation had not found that poor conditions hindered research. BARC employees told stories of incidents such as a 2022 plumbing leak that ruined data and records, and how inoperable alarms forced staff to divert time from their research in order to perform fire patrols. The letter stated that the agency had taken corrective measures to address these issues. This included hiring a new facility director and developing a plan for moving employees into fewer, more modern buildings. The Trump administration is proposing to cut funding to USDA research agencies, and the agency has already lost hundreds of employees as part of efforts to reduce the size and cost of the federal government. (Reporting and editing by Bill Berkrot in Washington, Leah Douglas reported from Washington)
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TSX swells as mining shares increase; Fed independence is in focus
Canada's main index of stocks edged up on Thursday, helped along by gains in heavyweight shares of mining, as investors considered U.S. president Donald Trump's recent criticisms against the Federal Reserve chair, which revived concerns over the central bank independence. The S&P/TSX Composite index, which is heavily influenced by commodities, was up 0.05% to 26,579.68. Copper prices rose to their highest level for nearly three months, causing mining shares to rise 0.6%. Copper miners Capstone Copper (up 9.1%), Teck Resources (up 6.7%) and Ero Copper (up 8.1%) were among the best performers on the main Index. In contrast, technology led the way down with a drop of 1.3%. BlackBerry fell 5.1%, after gaining nearly 13% Wednesday. Shopify fell 4.7%. As "people de-risked their portfolios...as little relief rallies have happened", the decline in technology shares is just a rotation. Shiraz Ahmed, CEO of Sartorial Wealth, said that he was taking money off the table now and waiting to see what happens. Trump, meanwhile, called Powell "terrible", and said that he had a few candidates in mind for the top position, after criticizing him repeatedly for not reducing interest rates earlier. The Wall Street Journal reported Powell could be replaced by Trump as early as September and October. Separately, an expert poll showed that Canada's home prices will decline by 2% in 2019 and remain stagnant until 2026 as a result of the tariff war. Twesha Dhikshit and Sukriti gupta report from Bengaluru.
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Brazil, host of COP30, warns against excessive reliance on carbon credits
The chief executive of the U.N. COP30 Summit said that countries should not rely too heavily on carbon credits in order to achieve climate targets. This was as the European Union prepared a new emission goal, which may include credits for a first time. On July 2, the European Commission will propose a new EU Climate Target for 2040. The legally binding target should be to reduce emissions by 90%. Brussels, facing pushback from certain governments, is looking at lowering the target for domestic industry and purchasing international carbon credits to fill in the gap. This was reported previously. These "credits" allow a country's climate goal to be met by purchasing "credits" for projects abroad that reduce CO2 emission, such as forest restoration in Brazil and Guyana. The proponents claim that this is an effective way to raise funds for projects in developing countries that reduce CO2. The opponents point out recent scandals where credit-generating project were found not to deliver the benefits claimed for climate change. Ana Toni is the CEO of the COP30 Climate Summit, which will be held in the Brazilian city Belem, in November. She said that Brazil does not oppose using carbon credits to achieve countries' climate targets - also known as national determined contributions at the U.N. - but cautioned against relying heavily on them for a significant portion of a nation's climate goal. She said: "The amount you receive is important because it shows the amount you have changed in your economy. If it's a large amount (of credits), you are not changing your economy." Toni said that countries should also ensure that any credits used for climate targets are of high quality and deliver environmental benefits. Brazil's view as COP host is not binding for delegations. However, Brazil is responsible for guiding negotiations and doing diplomatic work in order to encourage countries to set ambitious targets. Nearly 200 nations had a deadline of February to submit to the United Nations their climate targets for 2035. The majority, including China and the EU27, missed this deadline. Next week, the EU will present its climate goals for 2035 and 2020 together. The EU is divided on how much of the 2040 climate target should be met by credits. Officials said that Germany proposed to use credits to reach 3 percentage points out of 90%. Other countries, including France, suggested a larger share. Denmark and Finland, among other EU members, say that credits aren't needed. (Reporting and editing by Alison Williams; Kate Abnett)
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IMF increases forecast for Saudi GDP to 3.5% by 2025
The International Monetary Fund raised its GDP growth forecast for Saudi Arabia for 2025 to 3.5%, from 3%. This was partly due to the demand for government-led project and the OPEC+ plan to gradually end oil production cuts. Saudi Arabia is expected to have a budget deficit of $27 billion in this year due to lower oil prices. The kingdom is still pushing ahead with a massive transformation program called Vision 2030, which aims to wean its economy off oil dependence. Saudi Arabia has made significant investments in sports, entertainment, and tourism in the last few years. Even though oil prices are lower, growth is expected to be fueled by government spending and domestic demand. The IMF reported that "robust domestic demand, including government-led initiatives, will continue to fuel growth despite increased global uncertainty and a weak commodity price outlook." The Financial Times reported that in May, Saudi Finance Minister Mohammed Al-Jadaan stated the kingdom would take stock of its priorities as a result of a decline in oil revenues. The kingdom has committed to host several major international events. Each event will require significant construction and development costs. The 2029 Asian Winter Games will feature artificial snow, a freshwater lake created by man, and the World Cup in 2034, where 11 new stadiums and some renovated ones will be constructed. IMF report said that the kingdom's deficit fiscal will be funded largely by borrowing. Saudi Arabia, the world's largest emerging market dollar issuer, issued the most debt last year. But the IMF says that the country has plenty of room to borrow, as its net debt is only 17% of GDP. This makes it one of the lowest-indebted countries in the world. IMF reduced the Kingdom's GDP Growth Forecast to 3% from an initial estimate of 3.3% in January. The fund added on Thursday that the non-oil GDP growth in 2025 is projected to be 3.4%, which is about 0.8% less than last year. Pesha Magd is reporting; Jan Harvey is editing.
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Officials backed by Russia claim that Russia has captured a village in eastern Ukraine near a lithium deposit
A Russian-backed official announced on Thursday that Russian troops had taken control of an eastern Ukrainian village near a lithium deposit, after fierce resistance by Ukrainian forces. Shevchenko, a village in Donetsk in Ukraine, is one of four regions that Moscow claims as its own territory. Kyiv and the Western powers have rejected this as illegal. On Thursday, the Russian Defence Ministry said that Shevchenko and another settlement named Novoserhiivka had been taken. Ukraine has not yet commented on the report. Deep State, a Ukrainian military blog resource that uses open source mapping, shows Shevchenko as being under Russian control. Soviet geologists discovered the deposit in 1982 and said it was significant. The deposit is at a depth which would allow for commercial mining. Russian-backed officials say that it will be developed as soon as the conditions permit. The village of Shevchenko is also a settlement with a lithium deposit. It is located near the Dnipropetrovsk Region. The Ukrainian armed forces were one of those who sent a large number of soldiers to defend it, according to the TASS state news agency. According to the Ukrainian Geological Survey, the deposit is situated on Shevchenko’s eastern outskirts. It covers an area of almost 40 hectares. In January, some Russian media incorrectly reported that the Shevchenko Deposit had been captured. They confused it with another settlement by the same name in another country. Lithium has become a highly sought-after global resource due to its wide range of applications, from electric cars to mobile phones. According to U.S. estimates, the Ukraine has about 500,000 tonnes of lithium reserves, while Russia has twice that amount. Reporting by Andrew Osborn, Writing by Mark Trevelyan; Editing by Marktrevelyan
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Gold falls on easing Mideast tensions and Fed rate cut uncertainty
Gold prices fell on Thursday due to easing geopolitical tensions and the uncertainty surrounding the Federal Reserve’s interest rate policy. As of 1333 GMT, the spot price for gold was $3,316.47. This is a 0.5% drop. U.S. Gold Futures fell 0.4% to $3329.20. Gold has fallen over the last few sessions as a result of the de-escalation that took place in the Middle East. The market has also been under pressure due to the delayed interest rate cut, which is eagerly anticipated by the market, but continues to be held up by rising inflation expectations fueled by Trump's tariffs. Thomas Barkin, President of the Fed Bank of Richmond, cautioned that it is difficult to predict how tariff increases in the U.S. will translate into an increase in inflation. Chicago Fed President Austan Goolsbee stated that a decision made by U.S. president Donald Trump to replace Fed Chair Jerome Powell will not have any influence on the monetary policy of the central bank. The markets are currently anticipating two rate reductions totaling 50 basis points in this year. Gold is more attractive when interest rates are higher, as it does not earn interest. The data showed that the U.S. economic contraction was a little faster than originally thought during the first quarter, despite tepid consumption. This highlights the distortions brought about by tariffs. Investors will be watching Friday's Personal Consumption Spending (PCE) data. Palladium fell 2.5% to $1.084.41. Platinum reached its highest price since September 2014 by adding 1.7%, to $1,377.62. Nitesh Sha, commodities strategist with WisdomTree, says that internal combustion vehicles will likely remain relevant as long as governments continue to delay their phase-out goals. Biofuel adoption is still dependent on platinum group metals. Spot silver rose 0.2% to $36.39. (Reporting by Sarah Qureshi in Bengaluru; Editing by Shailesh Kuber)
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Sources say that the Russian cartel office has proposed a complete ban on gasoline exports.
Three industry sources said that the Russian Federal Anti-Monopoly Service has proposed an export ban on gasoline to combat high fuel prices. At the moment, only a small percentage of gasoline exported by re-sellers is restricted, whereas oil companies have a license to sell fuel abroad. The restrictions will last until August 31. FAS refused to comment. The government decides on any possible export ban, but the regulator can make its own proposals. The proposal to tighten restrictions was made as the domestic wholesale gasoline price in Russia on a commodity market jumped up to a 2-year high this month, to approximately 65,000 roubles (US$828.55) per ton. The Russian government has repeatedly applied temporary bans on gasoline exports in the last two years, to combat fuel shortages. Current restrictions do not apply to supplies to the Moscow led Eurasian Economic Union (a grouping of five former Soviet States) and to Mongolia, with whom Russia has intergovernmental agreements for fuel supply. Nigeria, Libya Tunisia, and the United Arab Emirates are among the largest importers of Russian gas.
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Greece orders evacuation of a coastal town after wildfire near the capital.
Greek firefighters fought a wildfire on Thursday that spread to houses in the coastal town Palaia Fokaia (40 km south of Athens). The authorities also ordered the evacuation of four seaside villages nearby. Eight aircraft, five helicopters, and 28 vehicles were used to help 90 firefighters in the area around Palaia-Fokaia put out fires caused by strong winds and burning houses. The number of people who had fled their homes in Palaia-Fokaia was not immediately known. The Greek TV showed a helicopter dropping a water bomb as thick grey smoke rose above the area, where temperatures reached 38 Celsius (100 Fahrenheit). Greece, located on Europe's southernmost edge and experiencing a hot climate, has suffered the environmental and economic impact of wildfires and flooding in recent years. Scientists say that this has been made worse by a rapidly changing climate. The country spent hundreds of millions to compensate farmers and households for damages caused by extreme weather conditions and to acquire modern and advanced firefighting gear to combat wildfires that have grown more difficult to control due to rising temperatures in the summer. In anticipation of a difficult wildfire season, Greece has increased the number of firefighters in its ranks to a new record of 18,000 for this year.
Stocks extend record run despite Fed pressures as dollar falls to 3-year low
The dollar fell to its lowest level in three years, while the world stock market reached its second record high within three days after a report that Donald Trump planned to select the next Federal Reserve Chief early fueled fresh bets about U.S. interest rate cuts.
Dollar selling continued as U.S. trade picked up after Wall Street Journal reported that the U.S. President - who had been urging Fed to reduce rates faster – was toying with idea of choosing Chair Jerome Powell’s successor in the next few month before his formal departure in May.
The greenback was down by nearly 0.5% Thursday, and over 10% for the entire year. If the greenback continues to fall in the coming days, it will be the biggest half-year drop since the beginning of the free-floating currency era in the early 1970s.
Wall Street's major markets opened modestly up, keeping MSCI's world stock benchmark at a record high for the year.
The euro was at its highest level since 2021, and Washington is preparing to hold trade tariff negotiations next week ahead of the July 9 global deadline set by Trump.
Michael Metcalfe, State Street's chief economist, said: "The dollar has struggled to appreciate in virtually any market regime."
He added that the economy was in a "structural decline" and cited State Street data showing investors are now more negative than ever about the dollar, or "underweight", in banking-speak. This is since the COVID Pandemic.
Euro traders were also encouraged by the NATO summit on Wednesday, where members agreed to spend 5% of their output on defense - 3.5% for troops and weapons, and 1.5% for looser defence-related measures.
The U.S. president Trump also announced plans for talks with Iran to be held next week in order to get Tehran to commit to curtailing their nuclear ambitions.
SHADOW MOVEMENTS
Overnight, Nikkei shares in Tokyo rose 1.65%, reaching their highest level since last January. MSCI's Asia-Pacific index outside Japan also finished marginally higher.
In the currency markets, the Swiss Franc strengthened to a decade high while the Japanese yen grew again and passed 144 per US dollar.
Trump has also intensified his criticisms of the Fed for not acting quickly enough.
He has repeatedly attacked Fed chief Powell. His idea to name a successor before Powell leaves his office could create a cloud over Powell's head and undermine him.
Tony Sycamore is a market analyst for IG. He said: "It's a certainty that Trump's choice to replace Powell will be someone who sits on the dovish side of the political spectrum and will support Trump’s agenda of lowering rates."
"The problem with this (is) that it will bring back questions raised earlier in the year about the Fed's independent, which, we saw, undermined confidence in the Fed, and the USD."
After its decline this year, the dollar index, which compares the U.S. currency to six other currencies, is now at its lowest point since March 2022.
The markets are also watching as Trump's deadline of July 9 for a trade deal to be reached approaches. If not, sharply higher import tariffs will take effect.
The CME FedWatch tool shows that traders now price in nearly 25% of the chance that the Fed will cut rates at its meeting on the last day of July, up from 12.5% the previous week.
The yield on the two-year U.S. Treasury, which moves typically in line with expectations of interest rates, fell by 1.5 basis points to 3.74%. This was its lowest level for seven weeks. Germany's benchmark, which is used for Europe as well, was about the same with 1.83%.
Oil prices are back on the upswing after a sharp drop following the Trump-brokered truce between Middle East rivals Israel and Iran early this week.
Brent crude futures increased 0.6% to $68 a barrel, U.S. West Texas Intermediate Crude (WTI), gained 1% to $60.60, while gold fell to $3,323 per ounce.
(source: Reuters)