Latest News
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Kashkari: Fed is "dead serious" about lowering inflation
Neel Kahkari, Minneapolis Federal Reserve President, said on Wednesday that U.S. employment looks "a bit better" now than earlier in the year, and that the Iran War has worsened an already high inflation rate. These views underscore Kashkari's preference to leave the Fed open to rate increases. Kashkari stated that he was "dead serious" about bringing the?inflation down at a St. Paul Area Chamber?event in St. Paul Minnesota. Kashkari is one of the three Fed policymakers that dissented at the Fed meeting in April. He advocated for a change in the Fed statement after the meeting to reflect an openness to interest rate increases and not only rate cuts. He spoke as 'the U.S. Senate was preparing to confirm Kevin Warsh, as the Fed’s new chairman. Donald Trump said he expected the Fed to reduce rates under Warsh. "The Federal Reserve chair has a great deal of influence." The chair sets the agenda. What topics will we be discussing? What types of?things are we going to consider in this 'deliberation?' Kashkari responded to a question on whether Warsh would deliver the rate reductions Trump desires. "But, when it comes to a vote (on interest rate), the chair is only one of twelve voters." So a new chair, no matter who it is, and whatever the situation, will need to convince his or her peers that this course of action is best.
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Poland claims to have intercepted Russian aircraft in the Baltic Sea
?Poland's air force intercepted an?Russian reconnaissance aircraft in international waters of the?Baltic Sea. The Russian flight was deemed a provocative act and a potential threat. The machine flew in international airspace with its?transponders off and without a flight plan. The Polish army stated in a social media post that there was no violation to?Polish airspace. Defence Minister Wladyslaw KsiniakKamysz stated that flights without transponders could be a 'threat to other aircraft' and 'that its pilots would always respond immediately. "Our aircraft intercepted an Il-20 Russian reconnaissance aircraft in international waters of the Baltic Sea." "This is yet another aggressive act by the Russian?Federation, and a test for our air defense system," he wrote in X. The Polish Army announced earlier?on Wednesday that?it?had conducted military aviation operations within Polish airspace in response to?Russian strikes against?Ukraine. The Operational Command of the Polish Armed Forces stated on X that "Ground-based radar reconnaissance and air defence systems which were activated have returned to standard operational activities."
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Gold continues to decline as inflation worries weigh on rate-cut bets
The gold price fell a second time on Wednesday as inflation fears fueled by war weighed on the expectations for interest rate reductions. Markets were also looking forward to the upcoming summit between U.S. president Donald Trump and Chinese President Xi Jinping. At 1:59 pm EDT (1759 GMT), spot gold was down by 0.6% to $4,686.35 an ounce. U.S. Gold Futures closed 0.4% higher at $ 4,706.70. U.S. Producer Prices increased more than expected in April, posting the biggest gain since early 2020. This is the latest sign that inflation has accelerated amid a 'war on Iran. Peter Grant, senior metals analyst at Zaner Metals and vice president, said that inflation remains sticky, and expectations of higher rates were reinforced. This has been pushing gold down the last two weeks. Gold is often seen as a hedge to inflation. However, higher interest rates tend to?pressurize the metal. The data released on Wednesday shows that the U.S. consumer price index increased in April by a further 3%, and its annual rate has reached its highest level in three years. Last month, the U.S. Central Bank left its benchmark interest rate at 3.50%-3.75%. According to CME Group's FedWatch, traders have priced in a U.S. interest rate cut for this year. Trump was in China to make deals, to maintain the fragile trade truce between China and the second largest economy of world, and to boost his public approval ratings, which were hurt by his war against Iran. India increased its import tariffs for?gold and?silver to 15%, up from 6%. This was done to reduce the amount of metals purchased overseas and to ease the pressure on the country's reserves of foreign currency. India is the?second largest consumer of precious metals in the world. Grant stated that the news of higher import duties from India could create a demand concern and be a long-term obstacle. After hitting its highest level in the past two months, spot silver rose 1.6% to $87.28 per ounce. Platinum rose 1.6% to $2.159.58 after reaching its highest level since 12 March. Palladium rose 1.2% to $1,508.39. Ashitha Shivprasad reported from Bengaluru, and Alexander Smith, Ali Williams and Diti Pjara edited the article.
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Gold prices in India surpass $200/ounce records amid profit-taking
Bullion dealers reported that gold discounts in India reached a record high of over $200 per ounce on Wednesday. This was due to the surge in price after the 'import duty increase, which triggered investor selling in a weakening 'demand. India raised its import tariffs for gold and silver from 6% to 15% on Wednesday as part of an effort to reduce overseas purchases of these metals and relieve pressure on the country’s foreign exchange reserves. "Discounts were insane in the physical market." "We were double-checking before we executed deals," said the bullion division chief of a Mumbai-based bank who has been trading gold for over two decades. Discounts offered by dealers in India On Wednesday, the official domestic price of gold was $17 per ounce, but that increased to up to $207 per ounce, including 15% import duty and 3% sales tax. Mumbai-based dealers at private banks said that the duty increase triggered a steep rise in gold prices in their locality, which led some investors to sell gold at deep discounts in order to take advantage of gains. The two bullion dealers refused to be identified as they weren't authorised to talk to the media. The price of gold futures on the?second largest consuming market in the world jumped 7.2% to 164 497 rupees for 10 grams. This was the highest level seen in over two months. The bullion dealer stated that investors?were also able to make profits on gold exchange-traded fund (ETFs) and this was adding to the supply?into the market. Ashok Jain of Mumbai's gold wholesaler,?Chenaji Narsinghji, stated that retail buyers and jewellers were on the sidelines. This increased selling pressure, pushing discounts up to "unusual high levels". A bullion dealer in Chennai also expressed concerns that the recent duty hike could increase smuggling as it increased?margins for gray-market operators from 9% to around 18%. Grey market operators sell gold for cash in order to avoid duty, which allows them to offer the product at a discount to market price by evading tax. (Reporting by Rajendra Jadhav)
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Sources claim that the Brazilian government will announce a measure to subsidise gasoline.
Two sources familiar with the matter said that the Brazilian government will announce an executive order on Wednesday to subsidize gasoline. The goal is to cushion consumers from the higher oil prices caused by the Middle East conflict. In a?statement, the government announced that it would hold a?press conference at 3 p.m. local (1800 GMT) on?Monday to announce "measures" for the fuel industry aimed at "addressing war's effects," but did not give any further details. According to a?source, the?subsidy would be paid to producers and importers of gasoline who will then pass on savings to consumers. The goal is an effect that's?similar to partial reductions in federal fuel tax. Last month, the government announced subsidies for diesel fuel and liquefied petroleum gas (LPG), as well as lower taxes on biodiesel and jet fuel. High fuel prices are a concern to?President Luiz nacio Lula da Silva who is expected to run for reelection in this year. (Reporting and writing by Bernardo Caram, Editing by Gabriel Araujo).
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Egypt signs $1.5 billion loan agreement with ITFC for food and energy security
Egypt and the Islamic Trade Finance Corporation signed a $1.5 billion loan on Wednesday, to support the food and energy security of the country in the north. ITFC CEO Adib Yourssef Al?Aama stated during the signing ceremony that the ITFC had approved more than $24 billion of funding for Egypt since?2008 to support the energy sector, food security and small and medium enterprises. The funding includes $8.8 Billion for the General Authority for Supply Commodities to support Egypt’s imports of?food?commodities. This includes 12.6 Million tons of wheat. The ITFC has also helped Egypt to pay off arrears owed by foreign oil companies that it has pledged to fully repay by the end June. Egypt's bread subsidy program, which costs up to $2.6 billion per year and relies on by 70 million people, is one of the largest wheat importers in the world. The government announced last week that it could end the current subsidy programme and replace it with cash transfers beginning in July. The loan is coming as Egypt's economy absorbs the shockwaves from the war in Iran. This will put fresh pressure on the?country that is still navigating its fragile reform path under the $8 billion IMF program. The war cast a shadow on Egypt's fragile economic stability. It remains heavily reliant upon hot money inflows for financing, and on gas imports for energy.
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Tyson Foods CFO: 'Spotty' expansion of US cattle herd by Tyson Foods.
Tyson Foods' Chief Financial Officer Curt calaway stated on Wednesday that U.S. producers are "spotty",?in their efforts to rebuild a nation's reduced herd. Supplies will remain tight as low inventories pushed beef prices to record levels. As part of his efforts to reduce domestic beef prices, President Donald 'Trump' has been considering possible executive actions that would lower tariffs on imported beef and regulations for producers. Prices for milk, eggs and other grocery staples are down since Trump's presidency in January 2025. However, beef prices have increased by over 16%. HIGH?PRICES AND DROUGHT WORRIES Ranchers are slow to keep female cows, also known as heifers, for breeding. This is a crucial step in rebuilding herds, and increasing beef production. Cattle supplies have dropped to their lowest level in 75 years by 2026. Producers have instead sent animals to be slaughtered in order to profit from high prices, and due concerns about the 'dry weather' limiting grazing land. Calaway, speaking at the BMO Investor Conference in New York, said that cattle supplies would remain tight until 2027. He added that heifer retention is "spotty" and "regional." He said, "We will still manage with a limited cattle supply." Meatpackers are losing money on their beef business because rising cattle costs outweigh the gains made by higher beef prices. Tyson closed a beef facility in Nebraska and reduced operations at another one in Texas, laying off thousands workers. The beef prices rose due to a strong 'demand' and ranchers cutting their herds as grazing lands in the western U.S. were affected by drought. The Trump?administration also halted the imports of Mexican cows to prevent the New World Screwworm parasite. Calaway stated that Tyson's business of prepared foods, which uses raw materials such as beef and pork, had seen commodity inflation in seven out of eight quarters. The Iran War has accelerated inflation for consumers. Producer prices in April posted their largest increase in four-years. Donnie King, CEO of Donnie King Enterprises, said that there is a "point" where consumers will turn away from a product because of the price. "Inflation" is a real thing. It persists. "We don't think that will change in any meaningful way."
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Rate cut bets are impacted by inflation worries as gold prices ease
The gold price fell a second time on Wednesday as inflation fears fueled by war weighed down on expectations of interest rate reductions. Markets were also looking forward to the upcoming summit between U.S. president Donald Trump and Chinese President Xi Jinping. At 12:38 pm EDT (1638 GMT), spot gold fell 0.3% per ounce to $4,701,50. U.S. Gold Futures rose 0.5% to $4 709.50. U.S. Producer Prices increased more than anticipated in April, posting their largest gain since early 2022. This is the latest sign that inflation has accelerated amid 'the Iran War. Peter Grant, senior metals analyst at Zaner Metals and vice president, said that "inflation is still sticky, so expectations of higher rates were reinforced." Gold is often seen as a hedge to inflation. However, higher interest rates tend to?pressurize the metal. TRUMP'S TRIP IN CHINA The data released on Wednesday shows that the U.S. consumer price index increased in April by a further 3%, and its annual rate has reached its highest level in three years. Last month, the U.S. Central Bank left its benchmark interest rate at 3.50% - 3.75%. According to CME Group’s FedWatch, traders have priced in a U.S. interest rate cut this year. Trump was in China to make deals, maintain the fragile trade truce between the world's second-largest economy and boost his public approval ratings, which were shattered by his war against?Iran. India has also increased import tariffs for gold and silver from 6% to 15% in an effort to reduce overseas purchases and relieve pressure on its foreign exchange reserves. India is the second largest consumer of precious metals in the world. Grant stated that the news of higher import duties has caused some?concerns about demand and could be a long-term headwind. Spot silver increased 3% to $89.13 an ounce, the highest level for two months. Platinum rose 2.8% to $2186.55 after reaching its highest level since the 12th of March. Palladium rose 2% to $1,521.12. Ashitha Shivprasad, Bengaluru. Alexander Smith and Alison Williams edited the article.
What is the most recent science informing us about climate modification?
After another recordbreaking year for worldwide temperatures in 2024, pressure is increasing on policymakers to step up efforts to suppress climate change. The last global clinical agreement on the phenomenon was launched in 2021 through the Intergovernmental Panel on Climate Modification, but researchers state evidence reveals global warming and its effects have given that been unfolding faster than anticipated.
Here is some of the current climate research study:
CRUCIAL POINT
The world might currently have hit 1.5 degrees Celsius (2.7 F). of warming above the average pre-industrial temperature - a. important limit beyond which it is at risk of irreversible. and severe environment change, scientists say.
A group of scientists made the suggestion in a research study. launched in November based on an analysis of 2,000 years of. atmospheric gases trapped in Antarctic ice cores.
Scientists have typically measured today's temperatures. versus a baseline temperature level average for 1850-1900. By that. measure, the world is now at almost 1.3 C (2.4 F) of warming.
But the brand-new information recommends a longer pre-industrial standard,. based on temperature information covering the year 13 to 1700, which. put warming at 1.49 C in 2023, the study published in the. journal Nature Geoscience stated.
OCEAN MODIFICATIONS. The warming of the Atlantic might hasten the collapse of a secret. existing system, which scientists caution could already be. sputtering.
The Atlantic Meridional Overturning Flow (AMOC),. which carries warm water from the tropics to the North. Atlantic, has actually helped to keep European winter seasons milder for. centuries. Research in 2018 showed that AMOC has damaged by about 15%. because 1950, while research released in February 2024 in the. journal Science Advances suggested it could be closer to a. important slowdown than formerly believed. In addition, with the world in the throes of a 4th mass coral. lightening occasion-- the largest on record-- scientists fear the. world's reefs have passed a defining moment.
Researchers will be studying bleached reefs from Australia to. Brazil for signs of healing over the next few years if. temperatures fall.
SEVERE WEATHER CONDITION. Ocean warming is not just sustaining more powerful Atlantic storms, it. is likewise causing them to intensify more quickly, with some. jumping from a Classification 1 to a Classification 3 storm in just hours. Growing proof shows this holds true of other ocean basins. In. October 2024 Hurricane Milton required only one day in the Gulf of. Mexico to go from tropical storm to the Gulf's 2nd most. powerful typhoon on record, knocking Florida's west coast. Warmer air can likewise hold more wetness, assisting storms bring and. ultimately launch more rain. As an outcome, cyclones are. delivering flooding even in mountain towns like Asheville, North. Carolina, inundated in September 2024 by Typhoon Helene.
FORESTS AND FIRES
Worldwide warming is drying waterways and sapping wetness from. forests, producing conditions for bigger and hotter wildfires. from the U.S. West and Canada to southern Europe and Russia's. Far East. Research released in October in Nature Climate Modification. calculated that about 13% of deaths connected with hazardous. wildfire smoke throughout the 2010s might be credited to the. environment effect on wildfires. Brazil's Amazon in 2024 was in the grip of its worst and most. extensive dry spell since records started in 1950. River levels. sank to all-time lows last year, while fires ravaged the. jungle. That included issue to clinical findings earlier in 2015 that. in between 10% and 47% of the Amazon will deal with combined tensions of. heat and drought from climate modification, in addition to other hazards,. by 2050.
That might push the Amazon past a tipping point, with the. jungle no longer able to produce enough moisture to quench its. own trees, at which point the community might shift to. broken down forests or sandy savannas. Worldwide, forests appear to be having a hard time. A July 2024 research study. discovered that forests overall stopped working to absorb the year before as. much carbon dioxide from the atmosphere as in the past, due. largely to the Amazon drought and wildfires in Canada. That. suggests a record amount of CO2 entered the atmosphere. In addition, scientists with the U.S. National Oceanic and. Atmospheric Administration discovered in December 2024 that while the. vast Arctic tundra has been a carbon sink for thousands of. years, increasing wildfire emissions imply the tundra is now. launching more carbon than it stores.
VOLCANIC RISE. Researchers fear environment modification might even enhance volcanic. eruptions. In Iceland, volcanoes seem reacting to. fast glacier retreat. As ice melts, less pressure is put in on. the Earth's crust and mantle.
Volcanologists stress this could destabilize magma tanks. and seems resulting in more magma being created, structure. up pressure underground.
(source: Reuters)