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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 key facilities of Iran's nuclear program
The Omani Foreign Minister said that a sixth round of U.S. - Iran nuclear talks would be held in Muscat on Sunday, following the announcement by U.S. president Donald Trump that Tehran will not be permitted to possess a nuclear device.
Trump stated on Wednesday that U.S. military personnel are being removed from the Middle East, because it "could be a dangerous area".
Here are some of Iran’s most important nuclear facilities.
Where are Iran's nuclear facilities?
The Iranian nuclear programme is spread out over many different locations. Despite the fact that Israel has been threatening airstrikes for decades, some sites are only built underground.
IRAN HAS A NUCLEAR WEAPONS SYSTEM?
The United States, as well as the U.N.'s nuclear watchdog, believe that Iran had a secret and coordinated nuclear weapons program which it stopped in 2003. The Islamic Republic has denied ever possessing or planning one.
Iran agreed to limit its nuclear activities as part of a 2015 agreement with world powers. The deal fell apart in 2018, when Trump, then in his first term of office as president, pulled out the United States and Iran began to abandon the restrictions.
IS IRAN INCREASING ITS URANIUM ENRICHMENT?
Yes. Since the deal fell apart, Iran has expanded its uranium-enrichment programme. The time it takes to reach weapons-grade uranium to build a nuclear weapon is now days or a little over a week instead of a year as was the case under the 2015 agreement.
It would take more time to actually make a bomb using that material. The exact time is not known and the debate continues.
Iran enriches uranium up to 60% fissile purity, which is close to 90% weapons-grade. It has two sites where it does this. In theory, the country could make six bombs if they enriched the material further.
NATANZ
Complex at the centre of Iran's nuclear enrichment program, located on a plain bordering mountains south of Tehran in the Shi'ite holy city of Qom. Natanz is home to two enrichment facilities: the massive, underground Fuel Enrichment plant (FEP) as well as the above-ground Pilot Fuel Enrichment Plan (PFEP).
In 2002, an exiled Iranian group revealed that Iran was building secretly Natanz. This sparked a diplomatic standoff with the West over Iran's nuclear intentions. The standoff continues to this day.
The FEP is a facility designed for commercial enrichment, with a capacity of 50,000 centrifuges. There are approximately 16,000 centrifuges installed, of which 13,000 are operational, and they refine uranium up to 5% purity.
The FEP is described by diplomats who are familiar with Natanz as being three floors underground. It has been a long-running debate as to how much damage Israeli aircraft could cause.
Other means of damage have been used to destroy centrifuges in the FEP, including an explosion that occurred and a power outage in April 2021 which Iran claimed was an Israeli attack.
The PFEP above ground houses only hundreds centrifuges, but Iran enriches up to 60% purity here.
FORDOW
Fordow, on the other side of Qom is a site for enrichment dug into the mountain. It's probably better protected against potential bombardment as the FEP.
Iran was not allowed to enrich at Fordow under the 2015 agreement with major powers. The centrifuges are mostly advanced IR-6 machines. Up to 350 of these can enrich up to 60%.
In 2009, the United States announced that Iran has been building Fordow secretly for years without informing the IAEA. Then, U.S. president Barack Obama stated: "The size of the facility and its configuration are inconsistent with a peace programme."
ISFAHAN
Iran's second-largest city, Isfahan has a major nuclear technology center on its outskirts.
The facility includes the Fuel Plate Fabrication Plant and the Uranium Conversion Facility (UCF), which can convert uranium to uranium hexafluoride, which is then fed into centrifuges.
Diplomats claim that Iran stores uranium enriched at Isfahan.
There is equipment at Isfahan to make uranium metal, a process that is particularly proliferation-sensitive since it can be used to devise the core of a nuclear bomb.
Isfahan will be a new location for 2022, according to the IAEA. It has machines that can make centrifuge components.
KHONDAB
Iran has a heavy-water reactor that is partially constructed. It was originally named Arak, and it's now called Khondab. Heavy-water reactors are a risk for nuclear proliferation because they produce plutonium easily, which can be used, just like enriched Uranium, to create the core of atom bombs.
The 2015 agreement saw construction halted and the core of the reactor removed, then filled with concrete, rendering it useless. The reactor would be redesigned to "minimize the production of Plutonium and not produce weapon-grade Plutonium during normal operation". Iran informed the IAEA it planned to begin operating the reactor by 2026.
TEHRAN RESERVE CENTRE
The Iranian nuclear research facilities at Tehran include a reactor for research.
BUSHEHR
The only nuclear power plant in Iran, located on the Gulf Coast, uses Russian fuel, which Russia takes back after it has been used, reducing proliferation risks.
(source: Reuters)