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State Department overhaul will eliminate thousands of jobs and push for 'Western Values'
The Trump administration notified Congress on Thursday of its plans to overhaul the State Department. This will result in the elimination of thousands of jobs and the reorientation of the human rights bureau of the agency towards "Western Values" as well as the reorientation of the refugee bureau for the return of migrants back to their country of origin. The shake-up is part of a historic push by Donald Trump to shrink federal bureaucracy, and align the remaining staff with his "America First' priorities. Secretary of State Marco Rubio announced the reorganization plan in April. He said that the State Department took into consideration the feedback from lawmakers. The plan was designed to reduce the bureaucracy of a department, which he claimed had grown without producing results. Rubio stated in a press release that the reorganization will lead to a Department more agile, and better equipped to protect Americans around the globe while promoting America's interests. According to the notification sent by the Congress, the review of which has been conducted, more than 300 of 734 offices and bureaus will be streamlined or eliminated. In a notification, it was stated that the department planned to reduce its domestic civil service and Foreign Service workforce by 3,448 employees, from 18,780 workers employed on May 4, according to the notification. The notification said that the department plans to cut thousands of U.S.-based workers, reducing its civil service and foreign service domestic workforce by 3,448 people out of 18,780 employees employed as at May 4. On Thursday, no job cuts were announced for local employees or U.S. personnel stationed overseas. "NATURAL RIGHTS" AND "FREE LABOR" Along with offices that monitor war crimes and conflicts in the world, the role of the top official responsible for civil security, democracy and human rights, will be eliminated. The new undersecretary for foreign aid and humanitarian affairs, confirmed by the Senate, will supervise the Bureau of Democracy, Human Rights and Labor, reorganized in order to "ground Department's values based diplomacy on traditional Western conceptions of freedoms core." It is headed by the deputy assistant secretary of "Democracy and Western Values." A summary of the notification stated that the new position of undersecretary will "ensure the efficiency and oversight of the delivery of foreign aid in an era post-USAID." Trump officials began with the Department of Government Efficiency, overseen by Elon Musk. Dismantling The U.S. Agency for International Development was established shortly after Trump's inauguration in January. The new bureau will have an Office of Free Markets and Free Labor that will promote the free-market and an Office of Natural Rights which will focus on what Trump sees as a "freedom of speech backsliding" in Europe and other advanced nations. Rubio said on Wednesday that foreign officials whom the Trump administration believes to be involved with censorship would be punished. Ban on visiting the U.S. The summary stated that the Bureau for Population, Refugees and Migration would also "substantially be reorganized" to support the Administration's efforts in returning illegal aliens back to their countries of origin or legal status. As we reported earlier in the month, the Refugee Bureau will also be responsible for U.S. responses to major disasters abroad. The notification from Congress also confirms that the Bureau of Energy Resources is to be renamed. absorbed The Bureau of Economic, Energy and Business Affairs will be merged. The notification also stated that offices working on climate change policies will be eliminated. The officials have stated that closing offices doesn't necessarily mean that an issue has been dropped as a priority. Some functions will now be performed by other departmental officials. (Reporting and editing by Doinachiacu, Philippa Adler, Leslie Adler, Doina Chiacu and Humeyra Pamuk; Reporting by Simon Lewis and Humeyra Pamuk)
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Los Angeles rebuilding is complicated by rising seas
Los Angeles wildfire survivors debate rebuilding Climate change adaptation and rising sea levels are key issues City of Malibu does not plan a'managed retreat' Rachel Parsons Joan is planning to rebuild her Malibu house, located just outside Los Angeles. Laurie, citing the climate change, doesn't. The conflicting views of the siblings reflect a wider conflict that is affecting communities all along the scenic California coast. Communities are debating whether to rebuild along the sandy coastline or not. Climate change is linked with rising sea levels, more frequent and severe flooding and storms. The City of Malibu has pledged to help fire victims rebuild quickly and to protect the multi-billion-dollar shoreline of its city from climate change. Its plans exclude the so-called "managed retreat", which helps residents to move away from shore. Experts in planning and policy say Malibu may be missing an important window to adapting to the rising seas. Climate change adaptation can be complicated by the conflicting laws and regulations of cities, counties and states that affect private property rights. Anne Guerry is a scientist at Stanford University in California and the lead scientist for the Natural Capital Project. She said that while it might sound like a great idea, it is difficult to talk about people's homes and life savings. The numbers speak for themselves. In 2020, a nonpartisan state analysis found that between $8 and $10 billion in California coastal property "is expected to be under water" within 30 years. The report stated that if the highest projections of sea levels manifested, "up to two thirds of Southern California's beaches could become completely eroded before 2100." According to the World Meteorological Organization (a U.N. agency), global sea levels have risen at a rate more than twice as fast as they did during the first decade of measurements between 1993 and 2002. They will reach a record-high in 2023. Sea levels rose 4.62mm per year on average between 2013-2022 due to extreme glacier melting and ocean heat records. At the center of the controversy is the land left by the Zoloth sisters to their parents. Laurie Zoloth is an ethicist from the University of Chicago who has written about climate change and its ethical implications. Joan Zoloth knows the risks of climate change, and three generations in her family have lost their homes to the Palisades Fire. She wants to give her children a Malibu home. Zoloth, an ex-journalist, said: "I'm afraid of it." "I have talked about it with my children, and they are aware of it. They believe in science. They still mention wanting to rebuild. Laurie Zoloth said it's one thing to write about disasters in theory, but "it is quite another to have to sift through the ashes from one's childhood." She thinks that they should still sell. COASTLINES ARE CHANGING Matt Myerhoff said that even if Malibu were to purchase destroyed properties, there was no plan for this. "Where would the money come?" he asked. The price of intact homes on the Malibu coast ranges from $5 million to $10 million. Wildfires destroyed hundreds of homes, but the lots are still worth millions. The total revenue of the city for fiscal years 2024-2025 is $85,9 million. California Gov. Gavin Newsom vetoed a 2022 bill that offered low-interest loans for municipalities to purchase vulnerable properties and rent them back to residents. He acknowledged that the plan could be useful for dealing with an ever-changing coastline but said it was lacking a "statewide context". Officials in Malibu declined an interview request but wrote that they are "rebuilding the city with resilience, safety and sustainability," which includes ensuring that coastal reconstruction will meet Federal Emergency Management Agency's (FEMA's) projections of sea level rise requirements. RETREAT COMMUNITIES Financial options are available for communities who choose to retreat. FEMA offers a grant to help municipalities purchase at-risk properties from their owners. Zachary Lamb is a professor at the Department of City and Regional Planning at University of California Berkeley. He said that rolling easements were another long-term solution. Lamb explained that an easement is a way for a land trust or city to purchase a property right that will be triggered by certain physical thresholds, such as a sea level rise insurmountable. He said, "You could purchase it in advance." This easement allows the owner to use some capital elsewhere. Lamb explained that buy-and-leaseback schemes are controversial because the cities rely on property taxes. "There's therefore a real incentive to not reduce their property tax roll" by becoming landlords. He said, however, that the retreat from Malibu, and other coastal communities is "inevitable," whether it's managed or not. Guerry stated that the insurance industry would eventually force a retreat by refusing beachfront property to be insured as sea levels rise.
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As US court blocks Trump's tariffs, oil prices drop on concerns about demand in volatile session.
The oil prices dropped on Thursday after the director of the International Energy Agency warned about weaker Chinese demand. Market participants also awaited potential new U.S. sanction to curb Russian crude flow and an OPEC+ announcement on increasing output in July. Prices rose after a U.S. Court ruled on Wednesday that President Donald Trump had overstepped his powers by imposing duties across the board on imports coming from U.S. Trading Partners. The court wasn't asked to deal with some of the industry-specific tariffs Trump imposed on automobiles and steel, using a different statute. Analysts say that the Trump administration's announcement to appeal the ruling may only provide temporary relief, as it has already said they will appeal. Brent crude futures fell 60 cents or 0.9% to $64.30 per barrel at 12:12 pm EDT (1612 GMT). U.S. West Texas Intermediate Crude fell 67 cents or 1.1% to $61.17 per barrel at 12:12 p.m. EDT (1612 GMT). Futures prices fell after IEA Director Fatih Birol told Bloomberg in an interview that the demand for oil in China was weak and developments in Russia, Iran and other countries were "questionable" for oil price. The U.S. is holding talks with Iran to curb Iranian nuclear activities, which have accelerated rapidly since Trump withdrew Washington from a 2015 agreement between Iran and major power that limited these activities. Phil Flynn is a senior analyst at Price Futures Group. He said, "We've heard a lot about Iran, and whether or not we are getting closer to conflict or peace." We're moving both technically and emotionally in many of these markets. OPEC+ (Organization of the Petroleum Exporting Countries) and its allies could agree to increase oil production in July on the front of oil supply. We assume the group will agree to another large increase in supply of 411,000 barrels a day. As the group intensifies its efforts to defend market share, we expect similar increases until the end third quarter. There are concerns over possible new sanctions against Russian crude. Chevron, which had its license revoked in March by the Trump Administration, has now stopped its oil production in Venezuela and other activities. Venezuela cancelled in April cargoes that were scheduled for Chevron citing payment uncertainty related to U.S. Sanctions. Chevron exported 290,000 barrels per day of Venezuelan crude oil before then, which was over a third the total. In a recent note, Mukesh S. Sahdev, Rystad's global head of commodities markets, predicted that demand would grow faster than supply by 600,000-700,000 bpd. The price of oil futures recovered some losses on Thursday after Energy Information Administration (EIA) data revealed that U.S. crude stocks fell by 2.8 millions barrels in the last week to 440.4million barrels. Analysts expected an increase of 118,000 barrels. A wildfire in Alberta, Canada forced the evacuation of residents from a small community and led to a temporary shut down of oil and gas production. This could affect supply. Reporting by Stephanie Kelly, Anna Hirtenstein, Katya Golubkova, and Emily Chow, in New York; London; Tokyo; and Singapore. Mark Potter, Nick Zieminski, and Nia William edited the story.
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US approves bigger nuclear reactor design for NuScale, document says
A document posted on the regulator's website on Thursday said that the U.S. Nuclear Regulatory Commission had approved NuScale Power’s design for a 77-megawatt reactor. This is the final hurdle to be cleared by the company before it can build a modular small reactor. NuScale originally requested and received NRC approval of a smaller reactor design. The company wanted a larger 77 MW design in order to improve the economics and performance for its planned small modular nuclear reactors (SMRs). Supporters of nuclear energy say SMRs are safer against proliferation risks, and they can reduce costs because multiple plants can be built at a factory rather than on-site. SMR critics claim that they are more expensive to run than conventional reactors because of their size and economies of scale. NuScale is the only U.S. firm with a design that has been approved. They want to build the first SMR in the United States. In 2023, it cancelled its first project in Utah with a local power group, despite the US government promising to fund the plant for $1,35 billion over 10 years. As the costs increased, several towns pulled out of this project.
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As markets struggle with US trade ruling, stocks rise and dollar gains are reduced
The U.S. Dollar weakened on Thursday after earlier gains were given up against major counterparts as markets digested a surprise ruling by a trade tribunal that blocked President Donald Trump’s so-called “Liberation Day” tariffs. The U.S. Court of International Trade ruled late Wednesday that Trump had overstepped his powers by imposing uniform duties on imports. After the Trump administration appealed and seemed ready to go to the Supreme Court, if necessary, the decision set off a legal battle that could weigh heavily on the markets. Wall Street saw all three indexes trade higher, after having lost ground the previous session. This indicates that the markets view the decision largely in a positive way. Nvidia rose 4% on Thursday after it reported earnings that exceeded expectations. The Dow Jones Industrial Average rose 0.11%, to 42,146.94. The S&P 500 increased 0.32%, to 5,907.51, and the Nasdaq Composite increased 0.48%, to 19,192.11. The STOXX 600 Index for Europe was down by 0.13% after rising earlier during the session. MSCI's broadest Asia-Pacific share index outside Japan closed the night up 0.77%. The MSCI index of global stocks rose by 0.42%, to 880. Brian Jacobsen is the chief economist of Annex Wealth Management, based in Wisconsin. He said that "the court's decision to overturn Trump's tariffs was more than a speed bump." While President Trump has the option to appeal or sidestep the ruling, these options are limited and could end up with the same outcome. The stock markets are happy with the ruling." After the news of the ruling, the U.S. Dollar initially rose against safe-haven currencies. However, it has since pared these gains. The number of Americans claiming unemployment benefits last week was higher than expected, indicating that the labor market continues to improve. The dollar fell 0.35% against the Japanese yen to 144.31 and 0.42% against the Swiss Franc to 0.824. The euro rose 0.56% to $1.1355. The dollar index fell by 0.95%, to 99.44, measuring the greenback in relation to a basket including the yen, the euro and other currencies. The yields on U.S. Treasury bonds, which had been under pressure due to investors' unease over Trump's tax and spending bill, rose initially but then fell. The yield on the benchmark 10-year U.S. notes dropped 3.1 basis points, to 4.448%. The yield on 30-year bonds fell 2.6 basis to 4.9521%. Bond markets may not be as happy. Jacobsen stated that bond investors still counted the revenue even though the tariffs weren't included in the budget bill. After the International Energy Agency director warned about weaker demand in China, and markets viewed possible U.S. sanctions against Russian crude flow, oil prices declined, retreating from their earlier gains. Brent crude futures fell 1.53% to $64.91 per barrel. U.S. West Texas Intermediate Crude fell 1.89%, to $60.67 per barrel. Gold prices increased in volatile trading, partly due to the weaker jobs data. Spot gold increased 0.74%, to $3313.77 per ounce. U.S. Gold Futures rose by 0.49% to an ounce of $3,311.10.
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Holcim CEO: Tariff uncertainty will not affect Holcim expansion in the US
Holcim, a Swiss supplier of building materials, will not be slowed down by tariff uncertainty. A Manhattan court ruled Wednesday that U.S. president Donald Trump exceeded his authority when he imposed duties across the board on imports coming from trading partners. Markets reacted with jubilation, but there is also uncertainty as to how this will affect companies. Holcim's shareholders approved the spin-off of its North American cement business, Amrize. This will allow Holcim to focus on the increased construction spending in America and reap the benefits. "We sell locally to local customers and produce locally." "The impact of tariffs on us is zero," said Chief Executive Miljan Gutovic in Greece, at the opening a net-zero 400 million-euro ($454million) cement plant. He said that the planned spin-off of their U.S. operations will occur by the end June. Gutovic stated, "I believe (it) will happen any day now. Probably in the second half June."
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African Development Bank launches carbon credit support facility
Senior bank officials announced on Thursday that the African Development Bank would launch a carbon market support facility to help unlock financing for a region that is increasingly affected by climate-change related droughts and hurricanes. Africa's largest multilateral lender said that the Africa Carbon Support Facility will be divided into two components. The first component helps governments create policies and regulations for carbon trading. The second component focuses on increasing the supply and demand of credits, as well as improving the market infrastructure necessary to increase their usage. Anthony Nyong said at the AfDB annual meeting that "we envision a future in which carbon credits will be tradable on Africa's stock markets." Carbon credits can be created by projects like planting trees in developing countries or installing wind farms. These projects receive one credit per metric ton of emissions they reduce or remove from the atmosphere. Companies and countries can purchase these credits to reach their climate goals. He said that most of Africa's carbon credit, which is mainly generated by forestry, land usage and farming, is currently sold on voluntary markets. However, embedding these credits in stock exchanges will boost their price. Africa's 54 nations have been hit the hardest by climate change, despite emitting a small share of pollution compared to industrialised countries. In recent years, it has been hit by a number of climate disasters, including tropical storms which have ravaged island states in the Indian Ocean, such as Madagascar, and coastal areas of Southern Africa, and severe droughts on the Horn of Africa. According to officials in the continent, only 1% of global climate finance is allocated annually to the continent. Kevin Kariuki is the AfDB vice president of power, energy and climate change. Nyong added that the initiative would also boost earnings by ensuring carbon credits produced on the continent are sold on compliance offsets markets where they could fetch prices up to 10 times more than voluntary offsets. (Reporting and editing by Marc Jones, David Holmes, and Duncan Miriri)
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IAEA official: No signs of preparations for restarting Zaporizhzhia
A U.N. nuclear monitor said that there was no indication Russia was planning to restart Zaporizhzhia's nuclear power plant after Ukraine complained. Russia had been reported to be preparing to connect the Zaporizhzhia to their grid. The largest nuclear power plant in Europe is Zaporizhzhia. It is owned by Russia. Six reactors have been shut down while war rages all around. The International Atomic Energy Agency called for a truce, and then measures could be taken to improve water and external power sources needed to cool nuclear material. The IAEA official, speaking on condition of anonymity, said: "Our teams confirm that at this time there are no active preparations being made for a restart now." On Wednesday, a Ukrainian official claimed that his country was a terrorist state Protests had been made IAEA: Tell them that Russia is building powerlines to connect Zaporizhzhia to its own grid. Yuriy Vitrenko is the Ukrainian ambassador to the IAEA. He told the Ukrainian news agency Ukrinform, that Kyiv views any attempt made by Russia to connect its grid to the occupied nuclear plant as a violation of international law. The New York Times reported on Tuesday that a recent Greenpeace report found that Russia was building over 80 km (50 miles) of powerlines between the occupied Ukrainian towns of Mariupol & Berdyansk. Rafael Grossi, IAEA director In March, it may be possible to restart at least one of the six reactors of the plant within months after a ceasefire lasting for several years has been achieved. This would require the plant to increase its water supply and external power. The plant has had a water problem since its biggest source of water, the nearby Kakhovka Reservoir, was emptied in 2023 when the dam was blown. This led to the digging of wells in Zaporizhzhia that provide enough water for cooling nuclear fuel while the reactors are shut down, but not enough if they were restarted. The IAEA official stated that "the plant has lost its main source for cooling water so the entire system cannot function as originally designed." "The water consumption is orders of magnitude greater (when the plant operates) than a cold shutdown. "We don't think there is a quick, easy fix," they said. Francois Murphy is the reporter; Toby Chopra, Giles Elgood and Toby Chopra are editors.
Tereos warns that low EU sugar prices will make this year difficult for Tereos
Tereos warned on Wednesday of a challenging year as the fall in European sugar and the weak margins of the starch industry are likely to continue to impact results in the first halves of the company's financial year, after the initial bite in 2024/25.
The European Union sugar price dropped by 35% between March and the end of last year due to a surplus of sugar in Europe, as well as competition from cheaper Ukrainian sugar.
Tereos CEO Olivier Leducq said to reporters that 2025 would be a difficult year.
Leducq stated that the EU sugar market will likely rebound due to lower supply, but this would not be noticeable until October or January. Tereos, which is in the starch industry, hopes to take advantage of low grain prices and rebuild margins following two bad years, but this will not happen until 2026.
Leducq stated that the world sugar prices which affect Tereos Brazil's large activities were likely to increase, supported by a smaller than expected cane crop in Brazil. However, Leducq added that market conditions remained uncertain.
The group reported a 17% decline in sales, to 5,9 billion euros ($6,69 billion), and a 29% drop in earnings before tax, depreciation, and amortization (EBITDA), to 801 millions euros, in the financial period that ended March 31.
Sales and EBITDA will reach record levels in 2023/24 due to high prices and improved margins.
This is the third-best (core profit result) ever recorded. Leducq said, "If I can achieve that in the next 5 years, I will be a very happy man."
Suedzucker (Germany) and Nordzucker (Norway), Europe's largest sugar producers, reported lower earnings. They expect EU prices to rebound only later this year.
Tereos’ net debt, a subject of intense scrutiny on the bond markets, decreased to 2.22 billion euro by March 31 from 2.37 billion euro a year earlier.
(source: Reuters)