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Report finds that coffee firms are not meeting the looming EU regulations on living wages for farmers.
According to a major report on the coffee industry, none of the top coffee roasters or?traders in the world have committed to pay farmers a living wage even though it will be a legal requirement for large 'companies' operating in the EU from 2029. Corporate Sustainability Due Diligence (CSDDD), a landmark EU directive, requires that large companies fix any human rights or environmental issues within their supply chain. Otherwise they could face fines up to 3% global turnover. According to the biennial Coffee Barometer prepared by a group NGOs, this law is the first EU instrument that recognises living income as a human right. This recognition has direct commercial implications on the coffee industry. Large companies will also need to have their compliance systems in place well before 2029. The report stated that "Pricing structures and contract duration are no longer solely commercial decisions. If they have adverse impacts on human rights, companies must change them." The report noted that, despite the fact that no one of the 15 largest roasters or traders in the world that they reviewed had disclosed any of this information, nor referred to living income commitments, when reporting on sustainability. According to Barometer, the coffee sector is dominated by smallholder farmers who are poor. Even at the current price levels, it is estimated that around 12.5 million farming households produce most of the coffee in the world. "Companies make sustainability commitments while their core commercial operations continue relying on commodity purchases at low prices. "Until this changes, sustainability investments will work around rather than on the problem." Barometer reviews top roasters Nestle and Starbucks, as well as top traders Olam and Louis Dreyfus, Ecom, and Volcafe.
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A false alarm at the Pentagon triggers a brief shelter-in place order
Officials said that a 'false alarm' at the Pentagon, following an air quality alert, briefly triggered a partial shelter in place?order? on Wednesday, while first responders were working to eliminate exposure to hazardous substances. The lockdown was applied to certain corridors of the five-sided Arlington, Virginia building. The employees were told to?stay put as tests were conducted to determine if a sensor malfunction was the cause. Officials said that many employees who were not in the areas of concern had been told to leave as a precaution. "Earlier today, Pentagon occupants received a notification of a possible air quality problem, which prompted immediate safety measures and an evaluation. Following a 'testing, it was confirmed that there is no danger and normal operations are now resumed", said Sean Parnell, the chief Pentagon spokesperson. We express our sincere appreciation to the first responders who took swift action to ensure the safety of all personnel. The Pentagon was one of the largest buildings in the world when it was attacked by al Qaeda on Sept. 11, 2001. Reporting by Phil Stewart and Doina chiacu; editing by David Ljunggren and Caitlin WEBBER and David Gregorio
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US sanctions Cuban State Oil Company, adding obstacles to fuel imports
Treasury Department's website revealed on Thursday that the United States has sanctioned Cuban state oil firm Union Cuba Petroleo, preventing the island government from importing much-needed fuel. Washington has imposed sanctions against a number of Cuban entities, people and leaders, including Cuba's president. It is attempting to increase?pressure on Cuban communist leaders. The sanctions come after the U.S. declared a national crisis this year, which imposed tariffs on countries that supply oil to the island. This has led to widespread power outages. In a recent social media post, U.S. Secretary of State Marco Rubio stated that Cuba's Communist elites had weaponized energy to control the Cuban people and make kleptocratic profits. "The regime has hoarded fuel for decades and used it to power the Castros' private plane, security forces to suppress the Cuban population, keep hotels lit and bus people into fake protests or political stunts, all the while the Cubans have been suffering blackouts and waiting weeks to fill up their cars," Rubio added. CUPET is responsible for Cuba's oil production, refinement and fuel imports. The U.S. Blockade has kept the island from receiving fuel or crude for several months. This is contributing to a severe fuel shortage, including for power generation. Cuba's last oil import from Russia arrived in late March, providing the island with a respite amid severe fuel shortages. A tanker that was bound for Cuba but had been waiting for weeks in the middle?Atlantic Ocean, diverted its course late in May and left the island empty-handed. Since January, when U.S. troops captured Nicolas Maduro, Washington has also blocked oil from Venezuela. Venezuela was Cuba's biggest oil supplier. Treasury Department's actions?freeze any U.S.-based assets of the company, and?generally bar Americans from dealings with it. Previously, a group of Cuban flagged vessels had been sanctioned for transporting Venezuelan oil from Venezuela to Cuba. Reporting by Marianna Pararaga and Ryan Patrick Jones, both in Toronto; editing by Doina chiacu and Andrea Ricci.
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GLOBAL-MARKETS-Equity indexes rise with dollar and oil, inflation and Iran in focus
The MSCI global equity index rose modestly to erase some of its losses from the previous session. Meanwhile, the dollar rose as investors digested inflation data on Thursday. Oil futures also rose despite attacks in the Middle East that dampened peace hopes. Donald Trump stated?on Thursday that the United States will hit Iran "very heavily tonight". He also said he wanted to at some point take Iran's oil-infrastructure hub Kharg Island. This was after both sides attacked each other in the Gulf, undermining a fragile ceasefire that began in April. Iranian and Western officials said indirect U.S. - Iranian talks on a preliminarily peace deal have intensified, but this week's hostilities have made it difficult to reach a quick resolution. The Middle East conflict has driven up the price of energy products, causing the U.S. producer's prices to increase more than expected. This is the biggest annual gain in three-and-a half years. The number of Americans claiming unemployment benefits has increased slightly last week. This is a sign that the labor market will continue to be resilient in early June. After a sharp drop in the previous two sessions, Wall Street's stock indexes were mostly green for morning trading. Mona Mahajan of Edward Jones' head of investment strategy, asset allocation, and said that while uncertainty in the Middle East was a major concern for investors, there were signs of cautious optimism among dip buyers as well as excitement ahead of SpaceX's market debut on Friday. "There is a small bounce, but I wouldn’t call it a full-blown rally or outsized optimism. Mahajan suggested that the silver lining may be the fact that people don't yet see the need for a full-blown bull market because the economy continues to perform well. Stocks in the volatile chip industry provided a major boost to Wall Street Thursday. However, software companies, such as Oracle, were also a drag. Their shares fell 11% after analysts became uneasy about their high AI spending estimates and plans to raise almost $40 billion through debt and equity. Wall Street at 12:19 pm The Dow Jones Industrial Average climbed 420.20, or 0.8%, to 50.337.24, the S&P 500 jumped 41.40, or 0.57% to 7,308.39, and the Nasdaq Composite grew 208.92, or 0.8%, to 25,378.42. The MSCI index of stocks around the world rose by 4.04 points or 0.37% to 1,091.02. As expected, the European Central Bank raised interest rates for the first time in almost three years. After the ECB rate hike, the euro fell 0.22% to $1.151. The dollar index (which measures the greenback's value against a basket including the yen and euro) rose by 0.21%, to 100.26, while the dollar fell 0.01%, to 160.53, when measured against the Japanese yen. Investor demand for portfolio rebalancing quarter-by-quarter and half-year helped to offset concerns about the U.S. - Iran escalation and high inflation data. The yield on the benchmark U.S. 10 year notes fell by 1.2 basis point to 4.528% from 4.54% on late Wednesday, while the 30-year bond rate dropped by 2.1 basis points. The yield on the 2-year bond, which is usually in line with the Federal Reserve's interest rate expectations, increased 1.4 basis points, to 4,141% from 4,127%, late Wednesday. On the energy market, U.S. Crude rose by 1.17%, to $91.08 per barrel. Brent rose by 0.57%, to $93.63 a barrel. Gold prices held near-stable after reaching a six month low on Thursday. The soft U.S. job report was offset by strong inflation data, and expectations of higher rates in advance of the Fed meeting next week. At 11:27 am, spot gold was unchanged at $4.081.99 an ounce. ET (1527 GMT) after reaching its lowest level since late November early in the session. U.S. Gold futures for August were down 0.7% to $4,103.60.
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The top cases in the US Supreme Court docket
During its current term, the U.S. Supreme Court will decide a number of important cases involving voting rights, presidential power, tariffs and birthright citizenship. Other issues include race, transgender sportspeople, campaign finance laws, LGBT "conversion therapies" and federal agency authority. The term began in October, and will run through the end of June. Separately, the court has also acted in emergency cases in several cases that challenge President Donald Trump's policy. VOTING RIGHTS ACT On April 29, the court gutted a crucial provision of the Voting Right Act, making minorities less likely to challenge a map as racially biased under the landmark civil right law. The court blocked an electoral map which would have given Louisiana a 2nd U.S. Congress district with a majority of Black people. The decision severely undermined Section 2 the Voting Rights Act which Congress passed to prohibit electoral maps that could dilute the power of minority voters. The ruling allowed Republican-led Southern States to demolish Democratic-held districts with majority-Black or majority-Latino voters ahead of November's midterm elections. After the Supreme Court gutted another part of the Voting Right Act in 2013, Section 2 gained more importance as a "bulwark" against racial bias in voting. Black and Latinos tend to vote for Democratic candidates. Birthright Citizenship The court expressed skepticism about the legality of Trump’s directive on April 1, to restrict the birthright citizenship in the United States. The justices asked the administration's attorney about the legal validity and practical implications of Trump's order. The lower court blocked Trump’s executive order that instructed U.S. agencies to not recognize citizenship for children born in?U.S. If neither parent is a legal permanent resident or American citizen, this is also known as a "green-card" holder. The court found that Trump's policies violated the 14th Amendment of the U.S. Constitution and federal laws codifying birthright citizenship. The Supreme Court will likely rule by June's end. TRUMP'S TARIFFS On February 20, the justices struck down Trump's sweeping trade tariffs, which he imposed under a law intended for national emergencies. This ruling has major implications?for global economic growth. The 6-3 decision upheld the lower court's ruling that Trump had exceeded his authority in using this 1977 law. The court ruled that Trump's claim to have the authority to impose tariffs was not supported by the law in question, the International Emergency Economic Powers Act (IEEPA). Congress has the power to impose taxes and tariffs, not the President, according to the U.S. Constitution. Tariffs are at the heart of a global trade conflict that Trump started after he entered his second term in office. This war has alienated trading partner, affected financial markets, and created global economic uncertainty. TRUMP'S FIRE OF FED OFFICIAL Justices expressed skepticism about Trump's attempt to fire Federal Reserve governor Lisa Cook, a move that could threaten the independence of the central bank. The justices said they would not grant Trump's request for a judge to overturn a decision that prevented him from firing Cook immediately while her legal case is being resolved. Congress created the Fed by passing a law, the Federal Reserve Act, that contained provisions designed to protect the central bank against political interference. The law stipulated that governors could only be removed "for cause" if the president so deemed. However, the law did not define this term or establish procedures for removal. Trump claimed that Cook's firing was due to unproven allegations of mortgage fraud, which she has denied. Cook, who is still in her position for now, said that the allegations were a pretext used to fire Cook over differences of monetary policy, as Trump pressures the Fed to reduce interest rates. The ruling is expected to be made by the end June. IMMIGRANTS WITH PROTECTED STATUS The Justices heard arguments April 29 on the Trump administration's move to strip humanitarian benefits from hundreds of thousands Haitian and Syrian migrants, as part of Trump's signature immigration crackdown. The Trump administration appealed two federal judge's rulings that halted its efforts to terminate Temporary Protected Status (TPS), which the U.S. Government had previously granted to over 350,000 Haitians and 6,100 Syrians. Some conservative justices seemed to agree with the administration that courts could not second-guess the decision of the government to end TPS. Some justices questioned also the challengers' claim that the administration didn't follow mandatory protocols when making decisions in accordance with the law governing TPS. The ruling is expected to be made by the end June. Federal Trade Commission Firing The conservative justices of the court have indicated that they will uphold Trump's legality in firing a Federal Trade Commission Member and give an historic boost to president power, while also putting at risk a 90-year old legal precedent. On December 8, the court heard arguments in the Justice Department appeal of the lower court's ruling that the Republican President exceeded his authority by dismissing Democratic FTC member Rebecca Slaughter before the term she was due to finish. The conservative justices seemed sympathetic to the Trump Administration's argument that tenure protections granted by Congress to independent agency heads unlawfully infringed on presidential powers under the U.S. Constitution. Trump was allowed to remove Slaughter until the case concluded. The court is expected to make a decision by the end June. TRANSGENDER SPORTS PARTIcipation The conservative justices seemed ready to uphold the state laws that ban?transgender sports players from participating in female teams, amid an escalating nationwide effort to restrict rights for transgender individuals. On January 13, the court heard arguments from Idaho and West Virginia in appeals of lower court decisions siding with transgender student who challenged the bans as being in violation of the U.S. Constitution, and a federal antidiscrimination act. 25 other states also have laws similar to Idaho's. The conservative justices expressed concerns over imposing a uniform law on the whole country, amid a sharp disagreement and uncertainty about whether medications such as puberty-blocking hormones or gender affirming hormones remove male physiological advantages in sport. The ruling is expected to be made by the end June. LGBT "CONVERSION THERAPEUTY" The court rejected on March 31, a Democratic-backed Colorado Law that prohibited psychotherapists from utilizing "conversion talk therapy" intended to change a LGBT minor's gender identity or sexual orientation. The 8-1 decision sided with the Christian licensed counselor who argued that the ban was an infringement on his right to free speech. The Colorado court rejected the argument that their law only protected speech, but regulated professional conduct. The court reversed a lower-court decision which had upheld a law brought by Kaley Chiles who argued it violated First Amendment protections from government abridgment. HAWAII GUNS LAW The conservative Justices expressed skepticism about a Hawaii gun law which restricts the carry of handguns in public places, such as businesses. They appeared ready to expand the right to own a firearm again. On January 20, the court heard arguments in an appeal filed by opponents of the law, backed by Trump's administration. The challengers were appealing a ruling by a judge that Hawaii's Democratic backed measure probably complies with U.S. Constitution Second Amendment rights to bear and keep arms. Hawaii's law demands that a property owner "expressly authorize" the handgun to be brought onto public property. Four other states in the United States have laws similar to Hawaii's. The ruling is expected to be made by the end June. Drug Users and Guns On March 2, the justices heard arguments in a case in which a dual American/Pakistani national in Texas was defending a federal gun law that prohibits users of illegal drugs to own guns. Hunter Biden, son of former president Joe Biden, was charged under this law in 2023. The Justice Department appealed a ruling by a lower court that the gun restrictions were in violation of the Second Amendment rights to "keep and carry arms" guaranteed under the U.S. Constitution. Gun possession by illegal drug users was prohibited under the landmark Gun Control Act 1968. The decision is expected to be made by the end June. CAMPAIGN-FINANCE On December 9, the court heard arguments in a Republican led bid to strike down "federal limits" on spending by parties and candidates coordinated with each other in a case that involved Vice President JDVance. The conservative justices seemed to be sympathetic towards the challenge. However, the three liberal members of the court appeared inclined to maintain the spending limits. The debate centers around whether federal limits on campaign spending coordinated with candidates' input violate First Amendment protections against government abridgment. Vance and Republican challengers have appealed the ruling of a lower court that ruled on restrictions on how much money can be spent on campaigns by parties with input from the candidates they support. This type of spending is called coordinated party expenses. The ruling is expected to be made by the end June. MAIL-IN-BALLOTS On March 23, conservative justices expressed skepticism about a Mississippi law that was challenged by Republicans. The law allows for a five-day period of grace to allow mail-in votes received after Election Day be counted. This case could lead to stricter voting laws across the country. The Trump administration supported the challenge against Mississippi's law that allows mail-in votes sent by certain voters be counted as long as they are postmarked before Election Day and received within five business days of a federal election. In Mississippi, absentee voting is only available to certain categories of voters. These include the elderly, disabled and those who live away from home. A lower court ruled that the law was unconstitutional. The court is expected to rule by the end June. U.S. ASYLUM - PROCESSING: The court seemed likely to rule for the Trump administration's defense of its authority to reject asylum seekers if officials deem U.S. - Mexico border crossings to be too overloaded to handle more claims. On March 24, the court heard arguments in a dispute over a policy known as "metering," which Biden's administration dropped in 2021. The Republican president may want to reinstate it. It allowed U.S. Immigration officials to stop asylum seekers and refuse to process their applications indefinitely. The decision is expected to be made by the end June. WEEDKILLER CAUSES CANCER The court seemed divided on Bayer AG’s efforts to stop thousands of lawsuits alleging that the German company failed to warn users of the dangers of the active ingredient of its Roundup weedkiller. On April 27, the court heard arguments in Bayer’s appeal of a Missouri state court jury verdict awarding $1.25million to a man called John Durnell, who claimed he had been diagnosed with non-Hodgkin's lymphoma following years of exposure. Bayer's claim that U.S. pesticide law prohibits lawsuits based on state laws was rejected by the lower court. The court is expected to rule by the end of June. Human Rights Abuses Around the World The court heard arguments in April 28 on a case that has broad implications for American human rights litigation. Members of the Falun-Gong spiritual movement have accused Cisco Systems, in a long running lawsuit, of facilitating religious persecusion in China. Cisco appealed the 2023 ruling of a lower court that gave new life to the 2011 lawsuit brought under the Alien Tort Statute of 1789 that accused the company of developing technology which allowed China's Government to monitor and persecute Falun-Gong members. Cisco asked the court to limit the scope the Alien Tort Statute which allows non-U.S. Citizens to sue in American courts over violations of international laws. The court is expected to make a ruling by the end June. SEC "DISGORGEMENT" POWER On June 4, the court rejected a challenge against the U.S. Securities and Exchange Commission’s broad authority to recover illicit profits through a financial remedy known as disgorgement. This strengthened one of the key powers of the Wall Street watchdog. The court upheld the decision of a lower-court that had supported a broad use of disgorgement powers by the SEC. In this case, the Trump administration defended the SEC. The SEC was defended by the Trump administration in this case. FCC FINES FOR WIRELESS CARRIERIES The Supreme Court ruled on June 4, defending the Federal Communications Commission system of levying fines and ruling against AT&T's and Verizon's challenge against the agency. Trump's administration defended FCC's system of assessing financial penalties known as forfeiture order. The carriers argued that FCC's internal proceedings deprived them their right to a trial by jury under the U.S. Constitution. 'GEOFENCE" WARRANTS On April 27, the court heard arguments in a Virginia case about whether or not law enforcement's use a "geofence warrant" to identify suspects using data from?cellphones near crime scene violates Fourth Amendment's bar on unreasonable searches. Geofence warrants approved by the court compel companies, such as Alphabet’s Google, to search for mobile devices near crime scenes around the time of the crime. In this case, a defendant pleaded conditionally guilty to robbing an institution of higher learning while reserving the right to argue against evidence obtained from what he believes was an illegal search. The ruling is expected to be made by the end June. CRISIS PREGNANCY COUNTER The court sided on April 29, with the operator in New Jersey of Christian faith-based "crisis pregnancies centers" that are anti-abortion and trying to obstruct a state probe into whether these facilities engage in misleading practices. First Choice Women's Resource Centers brought a federal suit against a subpoena issued by the state attorney general in 2023 seeking information about the organization's doctors and donors. A lower court had dismissed the lawsuit. First Choice's facilities are designed to discourage women from getting abortions. RASTAFARIAN INMATE The conservative justices seemed inclined to reject the Rastafarian inmate's attempt to sue Louisiana state prison officials after they shaved his head in violation of religious beliefs. On November 10, the case was brought before the court under a federal statute protecting incarcerated persons from religious discrimination. Plaintiff Damon Landor's religion requires that he let his hair grow. He appealed the decision of a lower court to dismiss his lawsuit, because they found that the statute in question did not allow him to sue officials individually for monetary damage. The ruling is expected to be made by the end June. DEATH ROW INMATE A man convicted in Alabama of a murder committed in 1997 was spared the execution on May 21, after the court upheld a ruling that the inmate has intellectual disabilities and is therefore ineligible to receive the death sentence. Alabama officials appealed a lower court's method of determining Joseph Clifton Smith’s intellectual capacity. The justices rejected the appeal. This method involved weighing the multiple intelligence quotient (IQ) test scores along with expert testimony. In a 2002 Supreme Court decision, the court ruled that executing a person with intellectual disabilities violated the Eighth Amendment of the U.S. Constitution prohibiting cruel and unusual punishment. JURY COMPOSITION On May 28, the justices sided with an inmate on death row who claimed that prosecutors had discriminated against him by excluding Black potential jurors in a trial where he was found guilty in 2006 of his involvement in the murder?of a supermarket owner. The justices found that the state courts of Mississippi had not evaluated Terry Pitchford’s claim that four Black prospective jurors were unlawfully dismissed, in violation a 1986 Supreme Court precedent called Batson v. Kentucky which prohibits exclusion based on race. SENTENCE REDUCTIONS The court ruled that on May 28, judges could not order early release of prisoners based on the fact that they would receive shorter sentences following the 2018 criminal justice reform law. The court upheld lower-court decisions against two Pennsylvania men who were convicted of armed burglaries and sought compassionate release on the basis of the First Step Act that Congress passed many years after their sentences. SECURITIES LITIGATION The court sided on June 11, with a group investment funds affiliated to BlackRock and other asset management firms in their attempt to defend against certain lawsuits filed by private plaintiffs, under a federal securities law. The court reversed an earlier ruling allowing hedge fund Saba Capital Master Fund, to sue the Investment Company Act of 1980 to invalidate fund bylaws that restricted the voting rights of activist shareholders. The Trump administration backed BlackRock and FS Credit Opportunities, as well as other funds in the case including Adams Diversified Equity Funds, Adams Natural Resources Funds and Royce Global Trust. COX COPYRIGHT DISSENSION The court ruled that Cox Communications could not be held responsible for the piracy of songs by subscribers to its internet service. These labels included Sony Music, Warner Music Group Universal Music Group, and others. This ended their multi-billion dollar music copyright suit. The ruling of 9-0 overturned the decision by a lower court to order a trial to determine the amount the internet service provider was liable for the record labels under a form liability known as contributory copyright violation. Cox said that a retrial would have resulted in a verdict of up to $1.5 billion against the Atlanta ISP. PHARMACEUTICAL SKINNY LABELS The court ruled that the generic version of Amarin Pharma Vascepa, a cardiovascular medication made by Hikma, did not violate Amarin Pharma patents. This decision could make generic drugmakers more resistant to patent suits involving "skinny label" claims. The justices reversed a decision by a lower court in favor of Amarin. Generic drugmakers argued that Amarin's victory in the case could have deterred them from producing and selling their cheaper drugs, and raised U.S. drug costs.
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Gold prices rise as inflation pressure is reduced by the soft US employment report
Gold prices remained nearly unchanged despite hitting a six month low on Thursday. This was due to a weak U.S. employment report, which offset the pressure of strong inflation data. It also increased expectations for higher interest rates in advance of the Federal Reserve meeting next week. At 11:27 am, spot gold was unchanged at $4.081.99 an ounce. ET (1527 GMT), having hit its lowest level since late November during the earlier session. U.S. gold futures for August were down 0.7% to $4,103.60. Data revealed that U.S. Weekly Jobless Claims?rose to 22,99,000 for the week ending June 6, exceeding expectations of 219,000. David Meger of High Ridge Futures, director of metals and trading, said that a weaker job market would support gold prices. He added that "we have seen?inflationary pressures increase both yesterday and today; the potential for higher interest rates has supported the dollar and pushed the gold market." U.S. producer price increases were higher than expected in May. Data on Wednesday also showed that U.S. consumer prices rose at their fastest rate in three years in the month. Since the U.S. and Israel war against Iran began in late February, spot gold has been under pressure as rising oil costs fuel expectations of high interest rates for a prolonged period. Gold is often viewed as a hedge to inflation but higher interest rates can weigh down on the metal. Investors are awaiting the Fed meeting next week, Kevin Warsh's inaugural as chairman. Rates are expected to remain unchanged. According to CME Group's FedWatch, traders are currently pricing in a 69% probability of an increase in the U.S. interest rate by?December. The U.S. and Iran exchanged air strikes on the geopolitical scene, with President Donald Trump threatening further strikes if Tehran did not agree to an immediate 'peace deal. Iranian sources claim that talks have intensified on a preliminary agreement. Silver spot rose 0.5%, to $64.04 an ounce. Platinum gained 0.6%, to $1674.76. Palladium rose 3.1%, to $1252.99. (Reporting and editing by Jonathan Ananda in Bengaluru, Anushree mukherjee in Bengaluru, Noel John)
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The US military would be at risk if they were to take Kharg Island
Donald Trump stated on Thursday that he wanted to seize Kharg Island, the?Iran oil infrastructure hub. Analysts believe the U.S. could seize the Island 'quickly', but that the move would put U.S. soldiers in danger and could prolong the war rather than shorten it. Where is Kharg Island and why is it important? Kharg Island is located in the northern Gulf about 400 km (483 miles) north of the Strait of Hormuz. It is located in water that is deep enough for tankers to dock, even if they are too big to reach the shallow waters of the Iranian coast. Before the start of the war on February 28, 90% of Iran's oil was exported from this island. Seizing the island would disrupt Iran's oil trade and put enormous pressure on Tehran. Iran is the third-largest producer of oil in the Organization of Petroleum Exporting Countries. What is the'state of play? U.S. forces conducted strikes against Kharg between March and April. Trump claimed that they had "totally destroyed" all military targets and suggested they could target the oil infrastructure next. U.S. officials said at the time that the administration was considering whether or not to send ground troops to the island. Kharg hasn't been attacked since then, but the United States continues to blockade Iranian ports and has targeted oil tanks near the island. Trump said on Thursday that he would "like" to take over the oil hub but did not give any specific plans. "My preference was always to take Kharg Island... that's my preference." "I don't think America can stomach it," he said to Fox News. The war has already severely reduced Iran's oil exports. CAMERA-WIRING DRONES Experts said that U.S. forces could seize the island fairly quickly. However, this would not necessarily result in a swift and decisive ending to the war. In March, Ryan Brobst and Cameron McMillan from the Foundation for the Defense of Democracies stated that a seizure or occupation of Kharg Island would be more likely to escalate and prolong the war rather than to bring about a decisive victory. They claimed that U.S. soldiers would be subjected to missiles and drone attacks. This could include "first-person-view drones", which are used by millions of people in Ukraine. They said that if the Iranian regime were to launch a successful attack, they would release online videos showing the deaths of American soldiers. TROOPS WILL NEED BACKUP Former commander of U.S. Central Command Joseph Votel told TWZ.com that 'while only 800-1,000 troops will be needed to hold Kharg Island they would also need logistical support and protection. Votel stated that the troops would be vulnerable and he doubted if capturing the island would give any tactical advantage. He called it "odd", but the U.S. would do it if necessary. (Reporting and editing by Andy Sullivan and William Maclean; reporting by David Brunnstrom)
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Dollarama's sales continue to grow, topping quarterly estimates
Dollarama, a discount retailer in Canada, beat its quarterly profit and sales estimates on Thursday. Cost-conscious shoppers sought out Dollarama for low-cost essentials. Its shares rose 7% at the start of trading. The high cost of gasoline linked to the Middle East war has put pressure on household budgets. Walmart, Target and Dollar Tree, as well as Dollar General, Dollar Tree, and other discount retailers in the United States have flagged a cautious environment for spending over the past few weeks. Dollarama also forecast a 3%-4% growth in comparable sales for the year. CEO Neil Rossy said: "We expect that our strong value proposition will continue to resonate with customers." The Reject Shop, a discount chain in Australia, was purchased by the company to expand their business outside of Canada. The company also operates in Mexico via its Dollarcity subsidiary which continues to grow. Brian Morrison, TD Cowen's analyst, said: "Progress in Mexico and Australia confirms our?view that the business model can be portable and they are the next engines for outsized growth." Dollarama reported net sales of C$1.85 ($1.32 'billion) in the?first three months, compared to analysts' estimates of C$1.82?billion, according to LSEG data. It reported quarterly earnings of C$302.3 millions, or C$1.11 per?share for the three months ending May 3. This compares to C$273.8million, or C$98 Canadian cents, per?share from a year earlier. The company's earnings were C$1.05 on a?adjusted base, compared with the expected 99 Canadian cents. (1 Canadian dollar = 1.3981 dollars) (Reporting and editing by Vijay Kishore in Bengaluru)
USDA reduces U.S. winter grain harvest forecast after Plains drought
The?U.S. The?Department of Agriculture cut its U.S. Winter Wheat Crop Outlook by 2% compared to a month ago as a severe drought in the Plains lowered its hard red wheat production outlook to its lowest level since 1957. The USDA reported that the U.S. Winter Wheat Production for 2026/27 was estimated to be 1.030 billion Bushels. This is down from the forecast of 1.048 million bushels last month, and below last year's crop of 1.402 bn bushels.
The production of hard red winter wheat, the most important variety in the United States was expected to drop to 497 millions bushels. This is down from an estimate of?515million last month, and below the 804 million-bushel harvest last year. U.S. producers are already under pressure from rising fuel and fertilizer costs due to the Strait of Hormuz closure, as well as trade disruptions caused U.S. President Donald Trump's tariff wars.
In key wheat states such as Kansas, Oklahoma, and Texas, the harvest is in full swing. However, some farmers in far western parts of the wheat belt have little or no grain. In a report of crop conditions released on Monday, USDA said that only 25% of U.S. winter grain crop was in good to excellent condition. This is the lowest rating for this time in USDA records going back to 1986. The USDA predicted?U.S. The USDA forecasted that wheat supplies would be 744 million bushels at the end 2026/27 seasons, down from 762 million bushels in May. On average, the analysts polled by expected that end-year supplies would be slightly higher. Grain traders accepted USDA's crop adjustment on Thursday, as it was within analyst expectations. Chicago Board of Trade benchmark hard red winter?wheat futures were up 0.6% at midday while soft red winter?wheat?futures fell 0.3%. On Thursday, the USDA did not make any significant changes to its estimates for U.S. soybeans and corn. U.S. ending corn stocks for 2025/26 were increased by 3 million bushels. 2025/26 soybean ending stocks remained unchanged at 340?million bushels. USDA raised their 2025/26 Argentine and?soybean crop estimates by each 2 million metric tonnes from last month. It also increased its Brazilian corn harvest outlook by 3 millions tons. The CBOT corn futures and soybeans declined on Thursday. Both markets were hovering at recent multi-month highs.
(source: Reuters)