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The EBRD President says the conflict in Iran is a threat to growth.
The president of the European Bank for Reconstruction and 'Development, said 'on Thursday that the widening U.S. -Iran conflict is a threat... to economic growth. But the impact will depend on the length of the conflict. Odile Renaud Basso, EBRD President, said in an interview with the Istanbul press that conflict can "reduce risk capital" in the region. However, he added that the fallout has been contained so far - except for Lebanon. She said that the risk was on the downside. The EBRD estimated growth in the 41 countries that it covers as 3.6% this year, and 3.7% in 2027. This was boosted by large infrastructure?projects undertaken in Europe but offset by uncertainty over U.S. trade and tariffs. The Strait of Hormuz has been effectively closed by the war, a major shipping artery. Crude prices have risen 12%, alarming many of the countries that import energy, and where the EBRD operates. Renaud Basso stated that the duration of the Strait of Hormuz closure and the spike in oil and gas prices were crucial, but also noted that high global gas stocks might help to cushion the blow. Lebanon is the exception. She said that it's "very much" at the heart of current turmoil. Hezbollah, a Lebanese group, launched drones and rockets at Israel's neighbour on Monday. This sparked a full-blown war between Israel and Lebanon. She said, "There we can expect a significant impact on the economy and in general." (Reporting from Jonathan Spicer, Istanbul; writing by Libby George. Editing by Amanda Cooper & Nivedita Bhattacharjee).
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The UK's slow response to allies in the Iran conflict has raised questions about its military effectiveness
The UK's hesitant response to the Middle East conflict and reluctance to defend its allies have renewed doubts about the military effectiveness of the country, especially when the U.S. demands widespread rearmament. Trump slammed Keir starmer, the British Prime Minister on Tuesday. He said that he had "ruined" their historically close relationship when London refused to allow the U.S. to use British bases for pre-emptive attacks on Iran. Cypriot officials have also criticised London for sending a drone made in Iran to strike one of Britain's bases on the island. This prompted France, Greece, and other countries to offer support. The British destroyer will not be sailing until next week and it is expected to take a week for the destroyer to reach the area. BRITISH MILITARY HAS FACED YEARS OF CUTS Starmer has defended Starmer's actions by saying that British personnel will only be involved in legal and well-planned military action. Since then, British jets brought down Iranian drones. Britain has also resupplied air defence systems for allies and now the U.S. is using its bases to conduct defensive operations. The initial response to the report has raised concerns about the readiness of the British military after years of cutbacks. Simon Diggins is a former British Defence Attache who served with U.S. forces in Afghanistan. If he were to summarize the situation, he would say "The Brits don't take it seriously". He said that Trump was "vulgar and rude" and "undiplomatic", but Britain made itself "operationally, and strategically", irrelevant, in spite of its advanced fighter jets, such as F-35s, and nuclear weapons. BRITAIN STRUGGLES TO SET OUT HIGHER DEFENCE SPENDING This latest spat comes after months of increasing tensions between Washington and its traditional allies. The shrinking British armed forces have undermined London's attempts to be seen as U.S.'s most reliable partner in Europe. The British army has shrunk to its smallest size since the Napoleonic Wars, with just over 70,000 trained full-time soldiers. According to the International Institute for Strategic Studies, Britain is behind other European countries in re-arming with its gaps in armoured vehicles and ships, as well as ground-based air defense systems. Starmer, who blames previous Conservative governments for the lack of military investments, plans to spend 2,5% of GDP by 2027, and aims at 3% after that date. The government of the United States has delayed the release its defense investment plan for the coming decade. Trump said that Germany, France and Britain are now competing with Britain to be Washington's most valuable partners in Europe. Lack of preparation Starmer's caution can be explained by the Iraq War, where Tony Blair's decision in 2003 to join the U.S. led invasion deeply divided the country. Analysts said that while Britain may have been able to defend its hesitation on using its bases because of legal concerns, the failure of the military preparation in the area, as the U.S. gathered warships, fighter jets, and other weapons, was a major strategic mistake. Tom Sharpe who served as a naval officer for 27 years, and commanded four British ships, said that the lack of a British warship in this region was the worst British decision he'd ever seen. He said, "We can't make good decisions because of the thinness of our force. The drone attack on the British Royal Air Force base at?Akrotiri in Cyprus has brought this lack of preparedness home. Cypriot officials said they were angry that Starmer hadn't publicly stated that the U.S. wouldn't use Akrotiri. This was shortly before Akrotiri was struck by a drone believed to be from Hezbollah. The rage of TRUMP may not affect the co-operation Former diplomats, current officials and analysts say that although Trump is clearly angry with Britain they do not view his latest outburst, when he called Starmer "no Winston Churchill", as a fundamental shift in policy. Michael Martins who worked in the U.S. Embassy in London during Trump's first tenure said that he didn't expect two countries to be "significantly decoupled" from each other when they are working closely on intelligence. Starmer said that the U.S. and British "special relationship" is reflected by their high levels of cooperation rather than the words of the President. The conflict in the Middle East is getting worse, and the U.S. isn't the only one who wants Britain to do more. Bader Al Saif, associate fellow of Chatham House in Kuwait, stated that European countries need to demonstrate they can support their Gulf allies if needed. He said: "I don't say that they should join in the war effort. But I think they have partners, including Gulf states, who they can support." (Additional reporting from Michele Kambas and Michael Holden, in Nicosia; editing by Alex Richardson.)
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USA Rare Earth acquires remaining stake in Texas Round Top Deposit for $73 Million
USA 'Rare Earth' announced on Thursday that it will acquire the remaining minority interest in an Texas rare earth deposit through a?all-stock transaction worth $73million, as part of?its?efforts to boost domestic production. The company will purchase all outstanding shares of Texas Mineral Resources in exchange for approximately 3.8 million common shares of USA Rare Earth. Following the news, shares of USA Rare Earth rose by 1% in premarket trading. The company said last year that it would 'bring forward commercial production of its rare earths in Texas project to late 2028 from 2030. It cited faster-than expected progress at its processing facility and the rising U.S. Demand for critical minerals. The acquisition will'make USA Rare Earth sole operator of Round 'Top project which it claims is the largest known U.S. resource of heavy rare Earth elements, gallium, and beryllium. USA Rare Earth announced earlier this year that the Trump administration will support a $1.6billion debt-and equity funding package for the Texas mine and magnetic facility to supply the defense sector and high-tech industries. Last year, President Donald Trump invoked emergency powers to boost the production of 'critical minerals' as part of an effort to counter a near total monopoly of this sector by China. Barbara Humpton, CEO of USA Rare Earth, said: "This acquisition is a key pillar to our strategy for building the world's most advanced global?integrated platform for critical minerals that are not from China." Under its Accelerated Mining?Plan, the company expects that it will be able to extract nearly 40,000 metric tonnes per day of critical minerals and rare?earths by 2030. The deal, which has been approved by both boards, should be completed by the third quarter. Reporting by Pooja menon in Bengaluru, editing by Saumyadebchakrabarty and Shreyabiswas
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India's diamond and jewellery imports are disrupted by the Iran conflict
Due to widespread flight cancellations and airspace closures, the Middle East conflict has affected India's exports of gems and jewellery, as well imports of rough diamonds from United Arab Emirates. Dubai, which is a major "global hub" for polished and rough diamonds, and bullion has suspended many cargo and passenger flights. This has affected trade flows, and the shipments of essential raw materials and exports, according to industry officials. Vipul Shah is the managing director of Asian Star, one of the leading diamond exporters. Nearly a quarter of India’s annual gems, jewellery and watches exports totaling around $30 billion come from the Middle East. The United Arab Emirates account for more than two thirds of India’s rough diamond imports. India is the world's largest diamond cutting and polishing hub. It processes nine out of 10 diamonds worldwide. Shaunak Parikh is vice-chairman of the Gem and Jewellery Export Promotion Council. He said that gems and jewelry exports from India will drop in March. Dubai is not just a major gem and jewellery market, but it's also an important intermediary between countries producing diamonds and major consumer markets. Parikh stated that if the conflict drags on it could hurt demand. India relies on the demand of the "Middle East" after its largest buyer, the United States imposed heavy tariffs on Indian products last year, and curtailed their purchases. Due to the volatility of the rupee-U.S. dollar exchange rate, overseas buyers are cautious when placing orders. Colin Shah, managing Director of Kama Jewelry, has cited the dollar exchange rate as well as logistical restrictions. On Wednesday, the?Indian Rupee hit a record low of 92.3025 to the?U.S. On Wednesday, the dollar was at a record low of 92.3025 per?Indian rupee. Diamond exporter in Mumbai said that both buyers and sellers are aware of the disruptions caused by war, so they have agreed to delay shipments. (Reporting by Rajendra Jadhav. (Editing by Jane Merriman.
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MORNING BID AMERICAS - Global markets take a deep breath
By Mike Dolan March 5th - What's important in the U.S. and Global Markets Today By Mike Dolan. Editor-at-Large for Finance and Markets The Asian markets recovered on Thursday. South Korea's KOSPI rose by almost 10%, clawing a piece of its recent drubbing, while Japan's Nikkei added nearly 2%. The apparent respite from the Middle East conflict was not confined to Asia. U.S. stocks and European stock prices also climbed?on Wednesday, as investors were comforted by even the slightest hint that geopolitical conflicts might ease. Below, I will go into more detail. Check out my most recent column about why Europe might be able absorb the Middle East's energy shock for now. Listen to the most recent episode of Morning Bid's daily podcast. Subscribe to the Morning Bid daily podcast and hear journalists discussing the latest news in finance and markets seven days a weeks. Global Markets Take a Breath The global markets seem to be taking a breather. The Nasdaq rose 1.29% in a tech rally on Wednesday, while the S&P 500 gained 0.78% thanks to some positive macroprints. This market breather is fueled by a mix of factors. Traders appeared to be encouraged by the New York Times report yesterday, which stated that Iranian intelligence indirectly contacted the CIA to seek a solution after the attacks on Saturday. Washington's plan, which involves navy escorts as well as insurance coverage to reopen Strait of Hormuz after it was closed by the terrorists on Saturday, may have also sparked some optimism. Positive news was reported on the labour front in advance of Friday's release of payrolls. The U.S. private pay-rolls for February showed a larger-than-expected increase. ISM's PMI for non-manufacturing, meanwhile, reached a "more than 3-year high". As the Middle East conflict enters its sixth and final day, a quick resolution of a clogged Strait of Hormuz seems, at least for now, a distant possibility. Analysts have said that Iran could continue drone attacks in the strait for many months. It's also not clear whether tankers will brave the strait with U.S. support from the navy and insurance. Other signs also point to this conflict lasting longer than just a few days. The U.S. Senate did not block the administration's war against Tehran and President Trump now has a largely unlimited power to direct it. On Thursday, oil prices rose on the prospect of a continued disruption. Brent crude, which is the price of U.S. crude oil, jumped more than 2% and reached $83 per barrel. The dollar also strengthened after retreating from its three-month-highs, while gold rose on the back of safe-haven demand. Meanwhile, U.S. stock index futures dipped ahead of the bell while U.S. Treasuries weakened. Investors will get more information?later on today, with the release of?weekly jobless claims ahead of tomorrow's Non-Farm Payrolls. Broadcom, a chip designer, reported on Wednesday a 29% increase in first-quarter revenues to $19.31billion and predicted that its AI chip sales would exceed $100billion next year. It is emerging as a major player in the AI chip market, signing deals that rival those of Nvidia's dominant competitor. Chart of the Day In recent days, global stocks have recovered some of the 2026 gains they lost following the U.S. and Israel attack on Iran in February. Watch today's events * ?U.S. Weekly jobless claims (8.30 AM EST), import prices for January (8.30?AMEST), Q4 Productivity (8.30 AMEST) * Fed's Michelle Bowman speaks Want to receive the Morning Bid every morning in your email? Subscribe to the newsletter by clicking here. Follow us on LinkedIn, X and ROI. The opinions expressed here are the author's. These opinions do not represent the views of News. News is committed to the Trust Principles and a commitment to independence, integrity, and freedom from bias.
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Report: Extreme heat in Africa's slums affects sleep, health and work
By Kim Harrisberg The report by the International Institute for Environment and Development stated that a growing crisis in overheated cities is affecting the health and livelihoods for more than 1 billion informal settlement dwellers in the Global South. This number will increase sevenfold by 2050. In a recent statement, IIED's principal researcher Anna Walnycki stated that extreme weather conditions can disrupt productivity and children's education and cause health issues. The climate crisis is affecting people in the poorest countries the most. IIED, in collaboration with Slum Dwellers international, a global movement for slum-dwellers, conducted a survey of more than 1,000 people living in three informal settlements of Africa to assess the effects of extreme heat. Researchers found that heat-related workdays were lost by 25% of respondents in Mathare, Kenya, Kombo, Tanzania, and Kariba, Zimbabwe. 40% reported being unable to sleep properly. Some people reported temperatures inside their homes of up to 40 degrees Celsius. In all three locations, over a third said that they spent more money during extreme heat to deal with the temperatures. This is roughly one-sixth of their monthly income. BETTER HEAT DATA The research showed that unplanned settlements are characterized by a lack of trees and greenery, as well as a high density of buildings constructed from inferior materials. This, in turn, increases the heat levels compared to areas within formal cities. Wealthier residents can invest in better air conditioning, building materials or move to areas with lower temperatures and more trees. The International Journal of Environment Research and Public Health published a study that found the poorest residents are the ones who suffer the most from rising temperatures. The survey was conducted by Mussa Raido who is a researcher for the Centre 'for Community Initiatives, Tanzania. The report concluded that, despite the fact that research has increased, there are still major gaps regarding the impact of rising temperatures on the urban poor. The report emphasizes the need for extensive and urgent data collection. It also calls for early heat warning systems and low-cost improvements to buildings that increase ventilation. And it recommends planting trees in high-density areas, which will provide shade and food security.
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Sources say Indian refiners are tapping Russian oil that is floating offshore.
Two sources who have direct knowledge of this matter confirmed on Thursday that Indian refiners are now using 'Russian oil' aboard ships?floating just off the coast of India to?make up for? the Middle Eastern crude lost due to the Iran War. India is susceptible to energy supply disruptions. Crude stocks only cover about 25 days' worth of demand. India was the largest buyer of Russian seaborne crude oil after Moscow's invasion of Ukraine in 2022. However, its refiners began to reduce their purchases starting in January, helping New Delhi avoid tariffs from Washington. According to a shipping resource, on Thursday, the Suezmax tanker Odune, carrying approximately a million barrels Russian oil, berthed in eastern Paradip port to be delivered to Indian Oil Corp., a state-owned refiner. According to the source, the vessel was floating in Indian waters. Source: IOC is also expected to receive 700,000 barrels Russian oil, loaded on the Spring Fortune, at Vadinar Port in Western India on Saturday. Indian Oil is accelerating its purchases of Russian oil including that which is loaded onto vessels cruising around India, according to a source. Indian Oil did?not immediately respond to a comment request. An 'industry source who has direct knowledge of Russian trading told us that 9.5 million barrels are floating in Indian waters, and could arrive within weeks. Source at another 'Indian refiner' said his company was also looking into buying Russian oil that is floating near India. Sumit Ritolia is an analyst with the ship-tracking firm Kpler. Kpler tracking indicates that about 30 million barrels (including volumes in floating storage) of Russian oil are available and loaded onto vessels in the Indian Ocean, Arabian Sea and Singapore Strait. Some of these vessels still haven't declared their destinations. Ritolia stated that if Indian refiners don't take action, these vessels could start moving towards China within a few days.
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Documents say that China and the US pressurize Ghana to stop gold royalty increases
According to three sources who are familiar with the issue and a letter by an industry group, China, the U.S., and other Western governments have launched an unusually coordinated effort to convince Ghana to stop a gold royalty hike that they claim could hurt some of the world's largest miners. Africa's biggest gold producer is looking to replace its fixed royalty of 5% with a sliding rate between 5% and 12 % linked to gold prices. This is part of a bid to increase revenue as gold reaches successive historical highs. The upper bands in the new regime could come into effect as early as next Monday if they are not amended or withdrawn. This would make Ghana the most expensive country on the continent and squeeze margins. Ghana has agreed that it will reduce an existing levied to help pass the reform. However, mining companies have said that the proposed scale is too aggressive, and they have therefore submitted counter-rates. DIPLOMATIC SUBSTANCE Along with the U.S., and Chinese, diplomatic missions from UK, Canada and Australia, as well as South?Africa, have intervened. This is what three senior executives in the industry described an unusually high level response to a tax proposal. A senior industry source stated, "This is the first time that I have seen the diplomatic community involved on this scale." Two people who were present at the meeting confirmed that representatives from the missions had met Ghana's Minister of Lands and Natural Resources this month. They presented a document highlighting their concerns. The group wants to continue discussions with the finance ministry. One executive stated that "the heads of missions expressed their concern about the challenging operating environment for the mines." The sensitivity of this issue led to all the sources requesting anonymity. The UK, Canadian, Australian High Commissions, and the U.S. South African, and Chinese embassies did not immediately respond when asked for comment. MINING CEOS VOICE CONCERNS The CEOs of global mining companies have also privately protested. Newmont, AngloGold Ashanti, Gold 'Fields and Perseus leaders wrote to or spoke directly with the Lands Minister in December and January. Chinese mines including Zijin Gold, Chifeng Gold and Shandong Gold have lodged formal protests. The Association of China-Ghana Mining sent a letter to Beijing's Ambassador warning that the proposal could threaten the viability of Zijin’s Akyem and Chifeng’s Wassa gold mines. The senior industry source said, "The issue of royalty has united companies in recent years like nothing else." Requests for comments from the mining companies were not immediately answered. Ghana's finance and lands ministries did not respond immediately to comments. Ghana-linked producers posted strong results for 2025. Newmont earned over $7?billion. Gold Fields doubled profits, AngloGold Ashanti tripled them, and Perseus made $421.7 million, an increase of 16% on the previous year. Maxwell Akalaare Adombila, Veronica Brown and Rob Corey-Boulet edited the story.
EU countries approve 2040 climate goal for 90% reduction in emissions
The European Union gave the 'final' approval to a new target on climate change to reduce greenhouse gas emissions by 90% by 2040. This is despite political opposition.
Last year, governments and EU legislators reached a political compromise that was fought hard. The new climate target is more ambitious than the commitments made by most major economies to reduce emissions, including China.
In order to achieve the goal, it will be necessary for European industry to reduce emissions by 85% compared with 1990 levels. The EU will compensate developing countries through carbon credits so that they can?cut emission on Europe's behalf, to reach 90 percent.
Last year, the EU reached a consensus on the goal after a tussle between Spain and other countries who argued that the worsening of droughts and fires justified more ambitious targets. Poland and Italy argued for softer emissions reductions, saying their struggling industries could not afford to make the initial investments. At a Brussels meeting, a majority of EU ministers signed off on the legally binding target. Czech Republic, Slovakia and Poland were against it. Climate target will now be incorporated into EU law.
In the future, as part of this agreement, the EU may also use international carbon credits to reduce emissions by a further 5%. This could further ease the domestic effort required.
This deal will also delay the launch of an EU carbon market, which is politically sensitive, by one year to 2028. The move was made to win over countries that are sceptical about the climate goal. The goal, designed to keep Europe's pledge to achieve net-zero emission by?2050 on track, falls short the 90% domestic emmissions reduction recommended by the EU climate?science advisors. The goal is weaker than the original Brussels plan, which reflects disagreements between EU governments about the cost and speed of implementing their green agenda. (Reporting and editing by Charlotte Van Campenhout, Tomaszjanowski and Kate Abnett)
(source: Reuters)