Latest News
-
US Government planning drastic Colorado River water reductions due to drought and overuse
According to a senior Arizona official, the U.S. government has proposed a plan to share water on the Colorado River, which is currently suffering from a drought. This new plan could reduce up to 40% of current supplies to Arizona and California. The federal government intervened last week to address severe water shortages. A 20-year-old agreement expiring this summer and the talks between the seven states who share the Colorado River at an impasse led to the proposal of a new plan. Buschatzke, a representative of the Arizona water stakeholders, told a gathering of Arizona water stakeholders that the U.S. Bureau of Reclamation had proposed a 10-year plan to reduce water consumption by as much as 3 million acre feet a year in order to maintain levels of water in Lake Mead, Lake Powell and other severely depleted river reservoirs. The U.S. Bureau of Reclamation proposed a 10-year plan in which Arizona, California and Nevada could potentially cut water use by up to 3 million acre feet?per year to maintain water levels in Lake Mead and Lake Powell, the river's severely depleted reservoirs. Buschatzke told a meeting?of Arizona water stakeholders on Wednesday. Nearly twice the cuts as before The'maximum federal cuts', which are reviewed every two-years based on water levels and would be nearly double as large as an offer made by these three lower basin states in May to reduce their water usage by 1.6 millions acre-feet each year. The Bureau of Reclamation, in a statement about its proposal without giving any further details, said: "Given that there is uncertainty and risk facing the Basin these elements are intended to provide stability, while also allowing flexibility for consensus-based suggestions to be incorporated as they evolve." Buschatzke stated that the federal plan will be implemented either under the existing Colorado River law, or through agreements between the states. He said that federal officials indicated water cuts between the three states in the lower basin would be based?on?the?priority of?the law of the river. This law, the Colorado River Compact of 1922, gives California priority in water use. Buschatzke called the proposed federal cuts "sobering." "That's Arizona and us," said Buschatzke. He was referring to the water flow on the Central Arizona Project. This canal transports Colorado River Water to central and Southern Arizona. Under the federal plan, water?releases would range between 5 and 12 million acre-feet annually from Powell and Mead. These reservoirs serve seven states. Buschatzke said, "I believe we all understand that it will be at the lower end of the range unless Mother Nature does her job." Rod Nickel edited the report by Andrew Hay, New Mexico.
-
Gold falls to a one-week low, as yields and the dollar climb. Middle East tensions also fuel inflation.
As U.S. Treasury yields and the dollar rose, gold fell to its lowest level in more than a week. Meanwhile, inflation fears due to the Middle East conflict reinforced bets on higher interest rates. By 11:40 am EDT (1540 GMT), spot gold had fallen 2.3% to $4,541.91 an ounce. This was its lowest price since May 4. So far, prices are down 3.7% this week. U.S. gold futures for June delivery fell 3.2% to $4,535 "There were a few reasons for the selloff in (precious) metals. The dollar is strong today. Edward Meir is an analyst with Marex. The yields on benchmark 10-year U.S. Treasury bonds rose to near a one-year-high, increasing the opportunity cost of non-yielding gold. Dollar was on track for its highest weekly gain in the past two months, making gold priced in greenbacks more expensive for foreign buyers. Donald Trump, the U.S. president, said that his patience was running out with Iran and that China had no significant breakthroughs in trade or tangible assistance to end this war. He added that "the Chinese didn't really offer much help to resolve the conflict and we are seeing crude oil moving up,?which reinforces inflation narrative, and this has been very bearish on the metals." Since the U.S. and Israel?war against Iran began, crude oil prices have risen by more than 40%. This has led to higher global inflation. In times of high inflation, central banks are more likely to raise interest rates. This reduces the appeal of non-yielding gold. According to CME's FedWatch Tool, traders have priced in interest rate?cuts by the U.S. this year. Bets on a hike are up. Spot silver dropped 8.6%, to $76.27 an ounce. Platinum fell 3.9%, to $1976.54, while palladium dropped 1.7%, to $1412,11. Spot silver fell 8.6% to $76.27 per ounce, platinum lost 3.9% to $1,976.54 and palladium was down 1.7% at $1.412.11. StoneX analyst Rhona o'Connell stated that silver was?overbought, and needed correction. Silver had fallen as much as 9% in the previous session and was set to have its worst day since February 12. (Reporting and editing by Joe Bavier in Bengaluru, Nick Zieminski and Ishaan arora from Bengaluru)
-
Bond yields rise on inflation fears as global shares fall
Investor euphoria about tech stocks was replaced by inflation fears on Friday, and traders bet more that the Federal Reserve would raise interest rates in 2018. U.S. president Donald Trump left China Friday with no significant breakthroughs in trade, or any tangible help from Beijing to end Iran's war. Oil prices rose again on Friday due to uncertainty over a Middle East?deal. This was in addition to the concerns raised by two high-inflation readings earlier this week. S&P 500, Nasdaq and other major stock markets fell on Friday following two sessions of record-breaking gains on artificial intelligence technology stocks. The market has realised that it was way ahead of itself. The market didn't pay enough attention to the economic and bond markets. "It was caught in this momentum AI trade," Kenny Polcari said, chief market analyst at Slatestone Wealth. The market has finally listened to what the economic data and bond market are telling them. The inflation rate is likely to rise in the coming months. FALLS ON THE WALL STREET At 10:52 a.m. (1450 GMT), on Wall Street, the Dow Jones Industrial Average dropped?432.76 or 0.86% to 49,630.70. The S&P 500 declined 75.90 or 1.01% to 7,425.34 while the Nasdaq Composite was down 387.22 or 1.45% to 26,249.36. The MSCI index of global stocks fell by 15.80 points or 1.42% to?1,100.26. The pan-European STOXX 600 fell by 1.56%. MSCI's broadest Asia-Pacific share index outside Japan dropped 2.54%, and Japan's Nikkei fell 1.99%. The Kospi index in South Korea fell by more than 6 percent on Friday, after recent gains. The index is still up by 77.8% for the year. GOVERNMENT BANK?YIELDS SKYROCKET In government bonds, yields on longer-dated U.S. Treasury bonds climbed to their highest levels in over a year. This was due to rising oil prices and fears of inflation from ongoing energy disruptions across the Middle East. Demand for U.S. Treasuries was already affected by inflation concerns. This week, demand was low at auctions. The yield on the benchmark 10-year note in the United States rose by 11.6 basis point to 4.576% from 4.459% at late Thursday, while that of the 30-year bond rose by 10.1 basis points. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve (Fed), rose by 8.3 basis points, to 4,075% from 3.992%, late Thursday. The dollar gained in value, putting it on course for its largest weekly gain in over two months as bets were placed on a Fed interest rate hike. According to CME Group’s FedWatch tool traders were betting last on a 38% chance that a 25 basis-point rate hike would occur by the end of this year, compared with less than 14% a week earlier. Kevin Warsh will replace Jerome Powell as Fed Chairman on Friday. Trump nominated the incoming Fed Chair, who is expected to be Kevin Warsh. Trump has been 'pressuring Powell to lower interest rates. Kevin Warsh will be put to the test by the market. "They're going press him to find out what he truly stands for," Polcari stated. The dollar index, a measure of the U.S. Dollar against a basket including the yen and the euro, rose by 0.32%, to 99.26. However, the euro fell by 0.39%, to $1.1623. The dollar gained 0.24% against the Japanese yen to 158.73. The sterling fell to a new five-week low on its fifth consecutive day of losses. It was last down by 0.43%, at $1.3341. The pound fell 0.9% Thursday after the resignation of Wes Streeting as health minister, deepening Britain’s political crisis. Steve Reed, British housing Minister, urged Labour Party legislators to "get behind" Prime Minister Keir starmer on Friday. Reed said that no one was willing to challenge him. On the energy market, U.S. Crude?rose by 3.7%, to $104.91, and Brent rose by 3.34% to $109.27 a barrel. Gold fell to its lowest level in more than a week, under pressure from rising Treasury yields and the dollar. Spot gold dropped 2.21%, to $4,46.93 per ounce. U.S. Gold Futures dropped 3.29% to $4,524.30 an ounce. Reporting by Sinead carew in New York and Sophie Kiderlin, London. Stella Qiu, Sydney. Sam Holmes, Mark Potter Joe Bavier, Barbara Lewis and Barbara Lewis edited the article.
-
US manufacturing production is boosted by motor vehicles and AI; war-related shortages of supplies are looming
The U.S. manufacturing sector posted its biggest increase in 14-months in April. This was driven by the demand for motor vehicles, and?technology products amid a boom in artificial intelligence spending. A survey released by the New York Federal Reserve showed that delivery performance in New York State deteriorated during May. The U.S. and Israel conflict with Iran has caused disruptions in shipping through the Strait of Hormuz. This has led to higher energy prices and global supply chain strains, as well shortages of many goods including consumer products, fertilizers and aluminum. In April, producer prices rose at the fastest rate in four years. The oil prices rose on Friday, after President Donald Trump's comments and Iran’s Foreign Minister's remarks quashed hopes for a deal that would end attacks and seizures of ships around the Strait. Michael Gapen is the chief economist of Morgan Stanley. He said: "Overall, a firmer demand, and a continued increase in output, point to some strength in the manufacturing sector." "However uncertainty about supply and prices puts the outlook for the near term at risk." The Federal Reserve reported that manufacturing output rose 0.6% in April, which is the highest increase since February 2025. This follows a 0.1% rise in March, which was upwardly revised. The Federal Reserve said that economists surveyed by it had predicted that factory production would rebound 0.2% following a 0.1% drop in March. In April, factory production increased 1.3% on an annual basis. The production of motor vehicles and parts jumped by 3.7%. The production of high-tech industries increased by 1.0%, after increasing 0.5% in March. Computers and peripheral equipment boosted output for the second consecutive month, increasing 1.5%. The production of semiconductors, electronic components and other related products increased by 1.0%. Communications equipment increased by 0.6%. AI is being rapidly adopted by businesses, who are investing billions in the process. This helps to support manufacturing, which represents?9.4% (?) of the economy. AI spending was a major contributor to the economy's annualized growth rate of 2.0% in the first quarter. Manufacturing, excluding high-tech industries and motor vehicle production, rose by 0.3% in April following a similar increase in March. Durable goods production jumped 1.2% in the last month. Chemicals production fell by 0.9%. Plastics and rubber production also fell by 0.9%. The production of petroleum and coal-based products increased by 1.0%, for the second consecutive month. Food, beverages and tobacco products also saw an increase in production. The increase in manufacturing could be due to companies placing orders early to avoid possible shortages or higher prices caused by the Middle East conflict. DETERMINING THE PERFORMANCE OF SUPPLIER DELIVERY New York Fed Empire State Manufacturing Survey revealed that its measure of business conditions rose nine points in May to 19,6. This was the highest level for more than four-years. New orders and shipments also increased significantly, both for the second consecutive month. The survey's measurement of delivery time reached a four-year peak, but its gauge of availability of supplies remained negative. This suggested that "delivery times had become much longer and availability of supplies worsened." Stocks in the United States were trading lower, as inflation fears increased. Treasury yields on longer-dated bonds reached their highest level in over a year. Dollar rose in relation to a basket. The financial markets expect that the U.S. Central Bank will keep its overnight benchmark interest rate at 3.50%-3.75 percent until next year, due to the higher oil prices and inflation. The higher interest rates may offset the manufacturing boost from tax cuts. Trump's import tariffs hurt manufacturing last year, but the AI spending spree helped to offset some of that drag. The Fed's report shows that mining output fell 0.1% in April after falling 1.6% in March. Energy production increased by 1.0%, but drilling for oil and gas wells decreased again in March. In the Fed's Beige Book last month, it was noted that "many producers were cautious about increasing drilling because of uncertainty?about the persistance of higher prices." Stephen Brown, Capital Economics' chief North America economist, said: "This second consecutive decline should serve as a reminder to those who think that an increase in U.S. oil production will offset the supply losses from Middle East." Electricity and natural gas production both increased by 1.9%. Utilities production fell by 1.4% in march. After a downwardly revised 0.3% decline in March, the overall industrial production increased by 0.7%. Previously, industrial output was reported to have decreased by 0.5%. In April, it increased by 1.4% compared to the same month last year. Capacity Utilization for the Industrial Sector, which measures how well firms use their resources, increased to 76.1% in March from 75.7%. This is 3.3 points below the average for 1972-2025. The manufacturing sector's operating rate increased by 0.4 percentage points to 75.8%. This is 2.4 points below the long-term average. Reporting by Lucia Mutikani; Editing by Chizu Niyama and Nick Zieminski
-
Rwanda's Trinity Metals aims to raise $200 million US dollars in order to increase tin and tungsten production
Rwanda's Trinity Metals plans to list on an international exchange in order to raise between $100 and $200 million as it expands its tin and tungsten mines, and moves forward with what could be one of the top lithium deposits in the world, according to its CEO. The soaring demand for metals known as 3T, which are used in electronic, defence, and energy supply chain, is driving a move toward traceable non-Chinese suppliers, bringing Rwanda's 3T mine belt near the Democratic Republic of Congo into sharper focus. Trinity has consolidated three undercapitalised properties in 2022, the Nyakabingo mine for tungsten, Rutongo's tin operation and Musha's tin-tantalum license. It is also converting many artisanal operations into industrial scale operations. Peter Geleta, the Chief Executive of the company, said that the output has quadrupled. The company is aiming to list on the New York Stock Exchange within the next 12-18 months in order to tap into the growing Western demand for essential minerals. We've decided to list .... New York is our preferred choice due to the appetite and liquidity for critical minerals." Not Affected by the Eastern Congo Conflict Trinity, however, has not been affected by the fighting in eastern Congo, according to Geleta. The company plans to invest $150 million in the next three year's time into processing plants at its mines. This includes a $50-million plant that could be operational by the end of 2027. Trinity's goal is to triple the tin and titanium production in three to five years. This will be achieved by mechanisation?and a new underground development. Geleta stated that strong prices for tungsten are the basis of their strategy, after China, which is responsible for around 85% global supply, curtailed exports and tightened markets. He said that all of his production was sent to the U.S.A., Europe, and Thailand. "We don't sell to China", he added, adding that long-term agreements were already signed with Western buyers. Geleta says that if drilling confirms the lithium deposit, it could be among the top 10 in terms of grade. He said: "We could easily become a multi-billion dollar company in five years if we make the right investments." Maxwell Akalaare Adombila wrote the article. Mark Potter edited the book.
-
Gold falls to a one-week low, as yields and the dollar climb. Middle East tensions also fuel inflation.
As U.S. Treasury yields and the dollar rose, gold fell to its 'lowest level in over a week on Friday. Meanwhile, inflation fears due to the Middle East conflict reinforced bets that interest rates would rise. By 9:40 am EDT (1340 GMT), spot gold had fallen 2.6% to $4,527.80 an ounce, its lowest price since May 5. Prices have fallen 4% this week. U.S. Gold Futures for June Delivery fell 3.2% to $4,535 "There were a few reasons for the sell-off in (precious metals). The dollar is strong right now. Edward Meir is an analyst with Marex. Benchmark 10-year U.S. Treasury yields have risen to a nearly one-year-high, increasing the opportunity cost of non-yielding gold. The dollar is set to make its biggest weekly gain in the past two months. This will increase the price of gold priced in greenbacks for foreign buyers. Donald Trump, the U.S. president, said that his patience was running out with Iran and that China had no significant breakthroughs in trade or tangible assistance to end this war. He added, "The Chinese didn't really offer much help to resolve the conflict. And we're now seeing crude oil rise, which reinforces inflation narrative, and has been very negative for metals." Since the U.S. and Israel war against?Iran started, crude?oil has risen by more than 40%. This has led to a global increase in inflation. In times of high inflation, central banks are more likely to raise interest rates. This in turn can reduce the appeal of non-yielding gold. According to CME’s FedWatch Tool, traders have priced in a U.S. rate cut this year but bets on a rise have increased. Spot silver dropped 8.7% to $76.26 an ounce. Platinum fell 4.1% to $1967.35, and palladium was down by 1.9%, at $1,409.75. All three metals are headed for losses this week. Silver had fallen as much as 9% in the previous day and was set to have its worst performance daily since March 3. (Reporting by Ishaan Arora in Bengaluru; Editing by Joe Bavier)
-
Venezuela starts giant debt rework, but hurdles remain
Venezuela announced a "comprehensive restructuring of public debt" on Wednesday. However, it still faces significant hurdles in order to complete one of the largest and most complex sovereign reworks ever. Analysts estimate that the total liability could exceed $150 billion once interest accrued, arbitration awards, and other claims are included. Here are some key questions and answers. WHAT DEBTS WILL BE AFFECTED BY THE RESTRUCTURING? The government stated that the aim is to "normalise" its outstanding debt obligations. This includes its international government bonds and PDVSA's bond. The statement is not as clear on other debts. The official debt, which is the multilateral loans that the government has taken out from lenders around the world, will be "addressed by institutional normalisation". However, there are no details on how the debts it has borrowed bilaterally from other countries around the globe will be handled. According to JPMorgan, Venezuela owes around $2 billion to the Inter-American Development Bank as well as the Development Bank of Latin America & the Caribbean. It owes China at least $10 billion bilaterally, with Brazil and Japan being other large creditors. JPMorgan stated that the restructuring of Venezuelan bonds and commercial debt may take a different path - and possibly faster - than its defaulted loans to "official sector" creditors. What are the basic principles of VENEZUELA? Venezuela said the restructuring will be based on four principles: sustainability, comprehensiveness and good faith, transparency and tempo, or speed. Analysts have doubts that Caracas can move quickly enough to ensure the process is thorough and covers all claims, including those from the United States. The 'intent' to restructure the debt has contributed to the sharp rise in bonds this year. Analysts at Citi stated that Venezuela is moving faster than anticipated towards a restructuring. They stressed that, although the process was not imminent, that it was important to have a credible start. What happens next? Venezuela has set an ambitious schedule, promising to deliver a macroeconomic frame and a Debt Sustainability Analysis (DSA) by June. The framework would include economic assumptions and projections, while DSA would evaluate its ability to service the debt and indicate how dramatically?the debt should be restructured. The International Monetary Fund is usually involved in both, and the process can take several months. The IMF's role in the June timeline is not clear. This has caused some concern among investors and analysts who expect the IMF to provide independent, credible assessments. The IMF stated 'on Thursday that it has not been involved in the process to date. Meanwhile, the interim president of Venezuela's Central Bank, Luis Perez said a delegation will travel to Washington to meet with the IMF by the end of the month. When can negotiations begin? Caracas hired Centerview Partners, a financial services company based in the United States. Washington recently granted it a licence allowing it to hire advisers. The licence does not permit Venezuela to negotiate with bondholders or come up with a deal. A group of investors has already established the "Venezuela Creditor Committee" (VCC). AJ Mediratta is a partner at Greylock Capital Management which is a part of the VCC. He said that the committee has been signaling to U.S. officials for over a year that they are ready to engage but Venezuela was not in able to start talks. Analysts believe Washington could act quickly to grant permission for negotiations to begin. (Reporting and editing by Marc Jones, Kirby Donovan, Kirin Strohecker; Johann M Cherian contributed additional reporting).
-
Early monsoon rains will hit the southern Indian coast, causing crop planting
The state-run weather service announced on Friday that monsoon rains will hit India's southern coast six days sooner than normal, leading farmers to hope for early plantings of rice, corn and other crops. India Meteorological Department said in a press release that the monsoon will likely arrive over Kerala's southern state on May 26. The margin of error is four days. The'monsoon' usually ends in Kerala by the middle of September. India's $4 trillion economy relies on the monsoon to replenish reservoirs and aquifers, as well as water its farms. India Meteorological Department predicted below-average rains for 2026, the first time since 2013. This raised concerns about farm production and economic growth. India Meteorological Department defines a normal or average rainfall as falling between 96% and 104% of the 50-year average rainfall of 87 cm for a four-month period. (Reporting and editing by Barbara Lewis; Mayank Bhardwaj)
Health Rounds: Plastic waste can be used to make a widely used pain medication
Researchers have found that common bacteria can convert plastic waste into acetaminophen (an over-the-counter painkiller), which researchers discovered.
Acetaminophen is made from fossil fuels, and it's the main ingredient of Tylenol, also known as Paracetamol in certain countries.
AstraZeneca helped develop the new method that transforms a polyethylene terephthalate molecule into Tylenol’s active ingredient. The process produces virtually no carbon dioxide emissions.
Researchers said that the plastic can be converted into the drug in less than 24 hrs at room temperature, by using a similar fermentation process to beer brewing.
PET, a lightweight, strong plastic that is used in water bottles and food packaging accounts for over 350 million tons annually.
This work shows that PET plastics are not just waste materials or materials destined to be made into more plastic. Microorganisms can transform it into new products that are valuable, such as those with the potential to treat disease.
Researchers said that more work needs to be done before PET can produce acetaminophen commercially.
MICROPLASTICS FOUND WITHIN HUMAN REPRODUCTIVE FLUIDS
According to the results of a study presented at the European Society of Human Reproduction and Embryology conference in Paris, the majority of women and men have microplastics present in their reproductive fluids.
Researchers said that the presence of microplastics raises questions about their potential risk to fertility and reproductive healthcare.
Plastic particles smaller than 5 millimeters were found in the fluid surrounding developing eggs within the ovaries of 20 women or 69%. In 12 out of 22 men (or 55%), microplastics were detected in the seminal fluid.
Researchers said that both types of fluids play a critical role in conception, whether natural or assisted.
In both groups, the microplastic polymers included polytetrafluoroethylene (Teflon), polystyrene, polyethylene terephthalate, polyamide, polypropylene and polyurethane.
Emilio Gomez-Sanchez, the study leader at Next Fertility Murcia, Spain, said that microplastics in animals can cause inflammation, DNA damage, hormonal disruptions and tissue damage.
In a separate talk at the meeting Manel Boussabeh, of Fattouma Bourguiba Hospital, Monastir (Tunisia), and his colleagues reported that microplastics found in test tubes impaired sperm motility and damaged DNA.
Researchers have found microplastics in both the testicles and the urine of humans and dogs. The data from canines suggests that the particles could contribute to reduced fertility.
Restoring a protein can turn off chronic inflammation
A report published in Nature suggests that researchers can stop chronic inflammation, while preserving the cells' ability to respond to injuries and short-term illnesses. This is done by targeting a newly discovered protein.
Chronic inflammation is caused by an immune system that has gone into overdrive. This can be seen in persistent conditions like arthritis, inflammatory colitis or obesity. Acute inflammation, such as pain, fever and swelling, resolves fairly quickly.
Researchers have found that during chronic inflammation, a protein which controls inflammatory genes is degraded.
In test tube studies, restoring a protein called WSTF prevented chronic inflammation of human cells, without interfering acute inflammation. This allowed appropriate immune responses for short-term threats.
Researchers then developed a medicine to protect WSTF and suppress chronic inflammation. This is done by blocking WSTF's interaction with another cell nucleus protein.
Researchers have tested the drug successfully to treat mice with fatty-liver disease or arthritis, and to reduce inflammation of chronically inflamed cells in knees obtained from patients undergoing surgery for joint replacement.
Researchers found that WSTF was lost in patients with fatty hepatitis but not in healthy people's livers.
Zhixun Dou, the study leader at Massachusetts General Hospital, said that chronic inflammation is a major cause of death and suffering. However we have a lot to learn about how to effectively treat this condition.
Our findings allow us to distinguish between chronic and acute inflammation and identify a new way of stopping chronic inflammation caused by aging and diseases.
(source: Reuters)